PUBLIC NOTICE
News Media Information 202 / 418-0500
Internet: http://www.fcc.gov
TTY: 1-888-835-5322
Federal Communications Commission
445 12
th
St., S.W.
Washington, D.C. 20554
DA 14-63
January 27, 2014
CLOSED AUCTION OF AM BROADCAST CONSTRUCTION PERMITS
SCHEDULED FOR MAY 6, 2014
NOTICE AND FILING REQUIREMENTS, MINIMUM OPENING BIDS, UPFRONT
PAYMENTS, AND OTHER PROCEDURES FOR AUCTION 84
AU Docket No. 13-268
TABLE OF CONTENTS
Heading Paragraph #
I. GENERAL INFORMATION ................................................................................................................ 1
A. Introduction...................................................................................................................................... 1
1. Background ............................................................................................................................... 4
2. Construction Permits in Auction 84 .......................................................................................... 5
B. Rules and Disclaimers.................................................................................................................... 10
1. Relevant Authority .................................................................................................................. 10
2. Prohibited Communications and Compliance with Antitrust Laws ........................................ 12
a. Entities Subject to Section 1.2105 .................................................................................... 13
b. Prohibition Applies Until Down Payment Deadline......................................................... 18
c. Prohibited Communications ............................................................................................. 19
d. Disclosure of Bidding Agreements and Arrangements..................................................... 21
e. Section 1.2105(c) Certification......................................................................................... 24
f. Duty to Report Prohibited Communications..................................................................... 25
g. Procedure for Reporting Prohibited Communications...................................................... 28
h. Winning Bidders Must Disclose Terms of Agreements ................................................... 31
i. Additional Information Concerning Rule Prohibiting Certain Communications ............. 32
j. Antitrust Laws................................................................................................................... 33
3. Due Diligence.......................................................................................................................... 35
4. Use of Integrated Spectrum Auction System .......................................................................... 42
5. Fraud Alert .............................................................................................................................. 43
6. Environmental Review Requirements..................................................................................... 45
C. Auction Specifics ........................................................................................................................... 46
1. Auction Start Date ................................................................................................................... 46
2. Auction Title............................................................................................................................ 48
3. Bidding Methodology.............................................................................................................. 49
4. Pre-Auction Dates and Deadlines............................................................................................ 50
5. Requirements for Participation................................................................................................ 51
II. SHORT-FORM APPLICATION (FCC FORM 175) REQUIREMENTS........................................... 52
A. Updating Applicant’s FCC Form 175 in Integrated Spectrum Auction System – Remedial
Filing Window Closes March 4, 2014 ........................................................................................... 52
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B. Minor Modifications to Short-Form Applications ......................................................................... 55
C. Maintaining Current Information in Short-Form Applications...................................................... 56
D. Submission of Updates to Short-Form Applications ..................................................................... 57
E. Electronic Review of Short-Form Applications............................................................................. 62
F. Installment Payments ..................................................................................................................... 64
G. Provisions Regarding Former and Current Defaulters................................................................... 65
III. PRE-AUCTION PROCEDURES ........................................................................................................ 71
A. Online Auction Tutorial – Available February 19, 2014 ............................................................... 71
B. Revised Short-Form Applications – Due Prior to 6:00 p.m. ET on March 4, 2014 ...................... 74
C. Application Processing and Corrections of Deficiencies............................................................... 77
D. Upfront Payments – Due April 7, 2014 ......................................................................................... 79
1. Making Upfront Payments by Wire Transfer.......................................................................... 80
2. FCC Form 159......................................................................................................................... 84
3. Upfront Payments and Bidding Eligibility .............................................................................. 85
E. Applicant’s Wire Transfer Information for Purposes of Refunds of Upfront Payments ............... 91
F. Auction Registration ...................................................................................................................... 92
G. Remote Electronic Bidding............................................................................................................ 96
H. Mock Auction – May 2, 2014 ........................................................................................................ 98
IV. AUCTION............................................................................................................................................ 99
A. Auction Structure......................................................................................................................... 100
1. Simultaneous Multiple Round Auction................................................................................. 100
2. Eligibility and Activity Rules................................................................................................ 101
3. Activity Rule Waivers ........................................................................................................... 105
4. Auction Stopping Rules......................................................................................................... 110
5. Auction Delay, Suspension, or Cancellation......................................................................... 113
B. Bidding Procedures...................................................................................................................... 115
1. Round Structure..................................................................................................................... 115
2. Reserve Price and Minimum Opening Bids .......................................................................... 117
3. Bid Amounts ......................................................................................................................... 120
4. Provisionally Winning Bids .................................................................................................. 127
5. Bidding .................................................................................................................................. 130
6. Bid Removal and Bid Withdrawal ........................................................................................ 136
7. Round Results........................................................................................................................ 138
8. Auction Announcements ....................................................................................................... 140
V. POST-AUCTION PROCEDURES.................................................................................................... 141
A. Down Payments ........................................................................................................................... 142
B. Final Payments............................................................................................................................. 145
C. Long-Form Application (FCC Form 301) ................................................................................... 146
D. Default and Disqualification ........................................................................................................ 147
E. Refund of Remaining Upfront Payment Balance ........................................................................ 150
VI. CONTACT INFORMATION ............................................................................................................ 152
Attachment A: Construction Permits to Be Auctioned.............................................................................A-1
Attachment B: Electronic Review and Updating of the FCC Form 175................................................... B-1
Attachment C: Auction-Specific Instructions for FCC Remittance Advice (FCC Form 159) ................. C-1
Attachment D: Cross-Walk of Applicant Names......................................................................................D-1
Attachment E: Summary Listing of Judicial, Commission and Bureau Documents Addressing
Application of the Ruling Prohibiting Certain Communications, 47 C.F.R. § 1.2105(c) .................. E-1
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I. GENERAL INFORMATION
A. Introduction
1. By this Public Notice, the Wireless Telecommunications Bureau (“WTB”) and the Media
Bureau (“MB”) (collectively, the “Bureaus”) establish the procedures and minimum opening bid amounts
for the upcoming closed auction of certain AM broadcast construction permits. This auction, which is
designated as Auction 84, is scheduled to start on May 6, 2014. This Public Notice provides an overview
of the procedures, terms and conditions governing Auction 84 and the post-auction application and
payment processes. Auction 84 is a closed auction with participation limited to those parties that had
previously submitted short-form applications.
2. On November 18, 2013, in accordance with section 309(j)(3) of the Communications Act
of 1934, as amended (the “Act”),
1
the Bureaus released a public notice seeking comment on competitive
bidding procedures to be used in Auction 84.
2
This Public Notice addresses filings submitted by four
Auction 84 applicants in response to the Auction 84 Comment Public Notice.
3
3. This Public Notice also provides instructions for Auction 84 applicants to review, verify
and, if necessary, update their previously-filed short-form applications. Applicants will have an
opportunity to review and update their short-form applications electronically using the FCC’s web-based
Auction System during a remedial filing window that will open on February 19, 2014, and will close on
March 4, 2014 at 6:00 PM Eastern Time (ET). Applicants whose applications are found to contain
deficiencies after the close of the remedial filing window will be provided with a limited opportunity to
bring their applications into compliance with the Commission’s competitive bidding rules during a
resubmission window, the dates for which will be announced in a future public notice. An Auction 84
applicant will be qualified to bid in the auction only if: (1) it has submitted a short-form application that is
complete and timely (i.e., the application complies with the Commission’s competitive bidding rules and
the procedures and deadlines set forth in this Public Notice), and (2) timely submits a sufficient upfront
payment for at least one of the permits for which it is designated as an applicant on Attachment A to this
Public Notice.
1. Background
4. Auction 84 will resolve pending groups of mutually exclusive applications for AM
construction permits. On November 6, 2003, the Bureaus announced an auction filing window for
applications for new AM stations and major modifications to authorized AM stations.
4
By Public Notice
1
47 U.S.C. § 309(j)(3)(E)(i) (requirement to seek comment on proposed auction procedures); see also 47 U.S.C.
§ 309(j)(4)(F) (authorization to prescribe reserve price or minimum bid); 47 C.F.R. §§ 1.2104(c) and (d).
2
Closed Auction of AM Broadcast Construction Permits Scheduled for May 6, 2014; Comment Sought on
Competitive Bidding Procedures for Auction 84, AU Docket No. 13-268, Public Notice, DA 13-2168, 28 FCC Rcd
15670 (WTB/MB 2013) (“Auction 84 Comment Public Notice”). A summary of this public notice was published at
78 Fed. Reg. 72081-86 (Dec. 2, 2013).
3
Specifically, S&B Broadcasting Company (“S&B”), Royce International Broadcasting Company (“Royce”),
Genesis Communications I, Inc. (“Genesis”) and Polnet Communications, Ltd. (“Polnet”) filed in response to the
Auction 84 Comment Public Notice. Those filings may be viewed through the Commission’s Electronic Comment
Filing System (“ECFS”) under proceeding 13-268.
4
AM New Station and Major Modification Auction Filing Window; Minor Modification Application Freeze, Public
Notice, DA 03-3532, 18 FCC Rcd 23016 (MB/WTB 2003) (“AM Auction 84 Window Notice”). The window opened
on January 26, 2004, and closed on January 30, 2004. Applicants were required to file electronically an Application
to Participate in an FCC Auction (FCC Form 175) and certain sections of FCC Form 301, Application for
Construction Permit for Commercial Broadcast Station. A separate Form 301 “tech box” was required for each
proposed AM station, which permitted the staff to make mutual exclusivity determinations between AM stations as
proposed in timely and complete filings. Id., 18 FCC Rcd at 23017-18.
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dated June 15, 2005,
5
the Bureaus provided a list of all applications received during the filing window
that were mutually exclusive with other applications submitted in the filing window.
6
In the AM Auction
84 MX Public Notice, applicants in several of the listed groups of mutually exclusive applications (“MX
groups”) were given the opportunity to eliminate their mutual exclusivity with each other by means of
settlement or technical modification to their proposals.
7
In addition, for each MX group in which
applicants proposed to serve different communities, an analysis under Section 307(b) of the
Communications Act of 1934, as amended, was required.
8
Finally, any MX group consisting of only new
commercial AM station applications for the same community did not require a Section 307(b) analysis
and was deemed ready to proceed to auction.
9
On August 30, 2007, the Bureaus announced a limited,
supplemental auction filing window to permit the filing of applications for a new AM station on
1700 kHz in a community located in Rockland County, New York.
10
The Bureaus will now proceed to
5
AM Auction No. 84 Mutually Exclusive Applicants Subject to Auction; Settlement Period Announced for Certain
Mutually Exclusive Application Groups; September 16, 2005 Deadline Established for Section 307(b) Submissions,
Public Notice, DA 05-1604, 20 FCC Rcd 10563 (MB/WTB 2005) (“AM Auction 84 MX Public Notice”). The
specified deadlines were extended in a subsequent public notice. Auction No. 84 Settlement Period and Section
307(b) Submission Deadline Extended to October 31, 2005, Public Notice, DA 05-2401, 20 FCC Rcd 14492
(MB/WTB 2005).
6
In determining mutual exclusivity the staff applied the following rule sections: 47 C.F.R. §§ 73.37, 73.182,
73.183(b)(1), 73.3571. See Review of the Technical Assignment Criteria for the AM Broadcast Service, MM
Docket No. 87-267, Report and Order, FCC 91-303, 6 FCC Rcd 6273 (1991), recon granted in part and denied in
part, Memorandum Opinion and Order, FCC 93-198, 8 FCC Rcd 3250 (1993); Nelson Enterprises, Inc.,
Memorandum Opinion and Order, FCC 03-38, 18 FCC Rcd 3414 (2003) (clarifying standards to establish mutual
exclusivity between window-filed AM applications); Policies to Promote Rural Radio Service and to Streamline
Allotment and Assignment Procedures, MB Docket No. 09-52, Second Report and Order, First Order on
Reconsideration, and Second Further Notice of Proposed Rule Making, FCC 11-28, 26 FCC Rcd 2556, 2580-84 ¶¶
46-53 (2011) (codifying technical standards for determining AM nighttime mutual exclusivity among window-filed
AM applications).
7
Specifically, MX groups that included at least one AM major modification application, or at least one
noncommercial educational (“NCE”) application, were given a limited opportunity to settle. See AM Auction 84 MX
Public Notice, 20 FCC Rcd at 10564. See also 47 C.F.R. § 73.5002(d); Reexamination of the Comparative Standard
for Noncommercial Educational Applicants, MM Docket No. 95-31, Second Report and Order, FCC 03-44, 18 FCC
Rcd 6691 (2003) (“NCE Second Report and Order”); Memorandum Opinion and Third Order on Reconsideration,
FCC 08-219, 23 FCC Rcd 17423 (2008) (“NCE Third Reconsideration Order”).
8
AM Auction 84 MX Public Notice, 20 FCC Rcd at 10565-66. See also Implementation of Section 309(j) of the
Communications Act – Competitive Bidding for Commercial Broadcast and Instructional Television Fixed Service
Licenses, MM Docket No. 97-234, First Report and Order, FCC 98-194, 13 FCC Rcd 15920, 15964-65 ¶¶ 117-20
(1998) (“Broadcast First Report and Order”) (prior to conducting an auction for the AM service, staff must
undertake a traditional Section 307(b) analysis), on recon., Memorandum Opinion and Order, FCC 99-74, 14 FCC
Rcd 8724 (“Broadcast First Reconsideration Order”), on further recon., Memorandum Opinion and Order, FCC
99-201, 14 FCC Rcd 12541 (1999)(“Broadcast Second Reconsideration Order”).
9
See AM Auction 84 MX Public Notice, 20 FCC Rcd at 10564. See also 47 C.F.R. §§ 73.5002(c) and (d); Orion
Communications Ltd. v. FCC, 213 F.3d 761 (D.C. Cir. 2000).
10
On August 22, 2006, the Commission released a Memorandum Opinion and Order directing the Media Bureau to
open a limited filing window to permit the filing of applications for a new AM station on 1700 kHz in a community
located in Rockland County, New York. Alexander Broadcasting, Inc., Memorandum Opinion and Order, FCC 06-
125, 21 FCC Rcd 9968 (2006) (“Alexander”); Supplemental AM New Station and Major Modification Auction
Filing Window for Auction 84; Minor Modification Application Freeze; Notice and Filing Requirements Regarding
October 1-5, 2007, Window for Certain AM Construction Permit Applications for Rockland County, New York;
Notice Regarding Freeze on the Filing of AM Expanded Band Minor Change Construction Permit Applications,
Public Notice, DA 07-3793, 22 FCC Rcd 16217 (MB/WTB 2007) (“Supplemental Rockland County Window
Notice”).
Federal Communications Commission DA 14-63
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auction with the 22 MX groups identified in Attachment A, which are those MX groups for which no
community merited a dispositive Section 307(b) preference, those MX groups in which all of the
applicants (or all of the remaining applicants after a Section 307(b) analysis) specified the same
community, and the Rockland County applicants.
2. Construction Permits in Auction 84
5. Auction 84 will offer construction permits for 22 new commercial AM stations. A list of
the locations and frequencies of these stations is included as Attachment A. Attachment A also sets forth
minimum opening bids and upfront payments for permits being offered in this auction.
6. An applicant listed in Attachment A
11
may become qualified to bid only if it meets the
additional filing, qualification and payment requirements described in this Public Notice.
12
Each qualified
bidder will be eligible to bid on only those construction permits specified for that qualified bidder in
Attachment A to this Public Notice. All applicants within each MX group are directly mutually exclusive
with one another; therefore, no more than one construction permit will be awarded for each MX group
identified in Attachment A.
7. Two parties seek removal from, or stay of, the auction as to two MX groups. In its
comments, S&B requests a stay of the auction for MX Group AM 84-172 until the applicants in this MX
Group are given an opportunity to submit, and the Media Bureau rules upon, information in support of a
section 307(b) analysis.
13
In essence, S&B seeks reconsideration or reversal of the Media Bureau’s
determination in its 2009 Rockland Settlement Public Notice that it would not conduct a section 307(b)
analysis for this MX group because the specific geographic and service conditions imposed by the
Commission in authorizing the opening of a limited supplemental filing window to applicants for
expanded AM band stations in Rockland County, New York fulfill the section 307(b) statutory mandate.
14
Polnet opposes S&B’s request and urges that the auction should proceed on the announced 2014 auction
schedule.
15
Polnet argues that S&B’s request is tardy and must be dismissed pursuant to the requirements
of sections 1.106 and 1.115 of the Commission’s rules.
16
8. We have previously recognized that a stay may be granted pending review of a petition
for reconsideration or other properly-filed challenge.
17
Because S&B failed to seek reconsideration of the
Rockland Settlement Public Notice within the 30-day period mandated by Section 405 of the Act and
11
Attachment A to this Public Notice lists the names of Auction 84 applicants using the names supplied on the Form
175. Attachment A of the Auction 84 Comment Public Notice listed each applicant using the name provided on the
Form 301 “tech box.” Six applicants provided different names on their Form 175 and Form 301 “tech box”
submissions. Accordingly, the names of six applicants are different on Attachment A to this Public Notice.
Attachment D to this Public Notice provides a listing of those changes.
12
All AM applicants listed in Attachment A previously filed short-form applications (FCC Form 175) in either the
filing window announced in the AM Auction 84 Window Notice or the Supplemental Rockland County Window
Notice.
13
S&B “Comments and Motion to Stay Auction” at 1-7.
14
Id. at 3-4.
15
Polnet “Reply Comments and Opposition to Motion to Stay Auction” at 1-3.
16
Polnet also contends that S&B’s filing violates the section 1.44 proscription on combining multiple requests in a
single pleading. Id.
17
See Alpine PCS, Inc., Request for Stay of Auction 78 for the Broadband PCS C Block Licenses in the San Luis
Obispo, CA and the Santa Barbara-Santa Maria, CA Basic Trading Areas, Order, DA 08-1602, 23 FCC Rcd 10485,
10487 ¶ 8 (WTB 2008) (“Alpine”).
Federal Communications Commission DA 14-63
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section 1.106 of the Commission’s rules,
18
it therefore lacks the necessary predicate to seek removal of
the MX group or stay of the auction as to these permits.
19
Accordingly, S&B’s request is dismissed.
20
9. Similarly, Genesis requests removal of MX Group 84-163A from Auction 84 until final
resolution of its pending Application for Review that challenges the Media Bureau’s Audio Division
decision denying Genesis a dispositive section 307(b) preference.
21
Genesis’s filing reiterates arguments
made in its pending Application for Review that challenges Media Bureau’s denial of Genesis’s petition
for reconsideration of the Division’s decision.
22
In effect, Genesis requests a stay of the auction of MX
Group 84-163A. We evaluate such requests under a four-part legal standard.
23
We have recognized that a
“stay is grantable if the petitioner can show that: (i) it is likely to prevail on the merits; (ii) it will suffer
irreparable harm, absent a stay; (iii) other interested parties will not be harmed if the stay is granted; and
(iv) the public interest would favor a grant of the stay.” Genesis fails to make the necessary four-part
showing to stay Commission action. While Genesis reiterates its claims on the merits, it does not claim
that it will suffer irreparable harm if the auction goes forward, nor does it attempt to explain why the other
competing applicant in this MX Group would not be harmed or how the public interest would be served.
Pending administrative and judicial appeals may often be associated with licenses offered at auction,
24
and the Commission and the courts have consistently rejected requests to stay Commission auctions in
whole or in part based on matters pending before the Commission.
25
Moving forward with the auction
process for this MX group will have no effect on the power of the Commission to decide Genesis’s
18
47 U.S.C. § 405(a); 47 C.F.R. § 1.106(f).
19
See 47 C.F.R. § 1.102.
20
Moreover, S&B has not made any attempt to address or even recognize the criteria under which we would
evaluate a request for stay, nor has it articulated any overriding public policy concern favoring such relief. See
Alpine, 23 FCC Rcd at 10487 ¶ 8, citing Washington Metropolitan Area Transit Comm’n v. Holiday Tours, Inc., 559
F.2d 841, 843 (D.C. Cir. 1977); Virginia Petroleum Jobbers Ass’n v. FPC, 259 F.2d 921, 925 (D.C. Cir. 1958)
(four-part standard for grant of stay).
21
“Statement of Genesis Communications I, Inc. for the Record” at 8.
22
See Rama Communications, Inc. and Genesis Communications I, Inc., Letter, 1800B3-ATS (MB Dec. 4, 2008)
(“Letter Decision”). The Media Bureau dismissed Genesis’s petition for reconsideration of the Letter Decision as
interlocutory, and thus not subject to reconsideration under section 1.106(a)(1) of the Commission’s Rules. Rama
Communications, Inc. and Genesis Communications I, Inc., Letter, 1800B3-BSH-LAS (MB Dec. 9, 2009).
Genesis’s Application for Review asks the Commission to reverse this decision and issue a decision before
conducting any auction of this MX group. Application for Review of Genesis, MX Group 84-163A, File No.
BMJP-20040128AKY (filed Jan. 6, 2010).
23
Alpine, 23 FCC Rcd at 10487 ¶ 8.
24
See, e.g., Northcoast Communications L.L.C., Order, DA 01-1885, 16 FCC Rcd 15637, 15641 ¶ 6 (WTB/CWD
2001), citing Bachow Communications, Inc. v. FCC, 237 F.3d 683 (D.C. Cir. 2001) (applicants for licenses in the 39
GHz band sought review of FCC interim procedures adopted during transition from comparative to competitive
application process); PLMRS Narrowband Corp. v. FCC, 182 F.3d 995 (D.C. Cir. 1999) (applicants for licenses in
the 220 MHz band sought review of FCC decision to assign licenses by auction rather than lottery); Fresno Mobile
Radio, Inc. v. FCC, 165 F.3d 965 (D.C. Cir. 1999) (incumbent licensees sought review of FCC decision to allocate
licenses in the 800 MHz band by auction).
25
See, e.g., FCC v. Radiophone, Inc., 516 U.S. 1301, 116 S.Ct. 283 (1995) (Justice Stevens vacating a stay of an
auction); Central Wyoming College and State Board of Education, State of Idaho, 2002 U.S. App. Lexis 12184
(D.C. Cir. 2002); Council Tree Communications, Inc. v. FCC, No. 06-2943 (3d Cir. June 15, 2006) (per curiam)
(denying a motion for stay of Auction 66 pending judicial review of movants’ challenge to the revised designated
entity rules).
Federal Communications Commission DA 14-63
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Application for Review or to grant appropriate relief if Genesis were to ultimately prevail on the merits.
26
As a matter of policy, if we were to refrain from offering at auction licenses or permits that remain subject
to administrative or judicial review, we would risk delay of future auctions for review by the Commission
and courts of the myriad issues parties could raise in attempts to circumvent auctions for their individual
purposes.
27
For these reasons, we decline Genesis’s request to remove MX Group 84-163A from this
auction.
B. Rules and Disclaimers
1. Relevant Authority
10. Prospective applicants must familiarize themselves thoroughly with the Commission’s
general competitive bidding rules,
28
including Commission decisions in proceedings regarding
competitive bidding procedures, application requirements, and obligations of Commission licensees.
29
Broadcasters should also familiarize themselves with the Commission’s AM broadcast service and
competitive bidding requirements contained in Part 73 of the Commission’s rules,
30
as well as
Commission orders concerning competitive bidding of broadcast construction permits.
31
Applicants must
also be thoroughly familiar with the procedures, terms and conditions contained in this Public Notice and
any future public notices that may be released in this proceeding.
11. The terms contained in the Commission’s rules, relevant orders, and public notices are
not negotiable. The Commission may amend or supplement the information contained in our public
notices at any time, and will issue public notices to convey any new or supplemental information to
applicants. It is the responsibility of all applicants to remain current with all Commission rules and with
all public notices pertaining to this auction. Copies of most auctions-related Commission documents,
including public notices, can be retrieved from the FCC Auctions Internet site at
http://wireless.fcc.gov/auctions. Additionally, documents are available for public inspection and copying
at the FCC Reference Information Center, 445 12th Street, SW, Room CY-A257, Washington, DC
20554, during its regular business hours. Documents may also be purchased from the Commission’s
26
See Alpine, 23 FCC Rcd at 10490 ¶ 18. See also Auction of C, D, E, and F Block Broadband PCS Licenses,
Public Notice, 14 FCC Rcd 5467, 5470-71 (1999) (auction would continue notwithstanding that several licenses to
be auctioned were the subject of pending proceedings by parties claiming continuing interests in the licenses;
winning bidders would receive refunds of any payments if forced to surrender licenses won at auction).
27
See Alpine, 23 FCC Rcd at 10491-92 ¶ 22; 21st Century Telesis, Inc., Order, DA 00-2889, 2000 WL 1868132 at ¶
6 (WTB rel. Dec. 21, 2000); Motion of Ranger Cellular and Miller Communications, Inc. for a Stay of the Cellular
Rural Service Areas Auction No. 45, Order, DA 02-1135, 17 FCC Rcd 9320, 9323 (WTB 2002).
28
47 C.F.R. Part 1, Subpart Q.
29
See, e.g., Amendment of Part 1 of the Commission's Rules – Competitive Bidding Procedures, WT Docket No.
97-82, Order on Reconsideration of the Third Report and Order, Fifth Report and Order, and Fourth Further
Notice of Proposed Rule Making, FCC 00-274, 15 FCC Rcd 15293 (2000) (“Part 1 Fifth Report and Order”)
(modified by Erratum, DA 00-2475 (rel. Nov. 3, 2000)); Seventh Report and Order, FCC 01-270, 16 FCC Rcd
17546 (2001) (“Part 1 Seventh Report and Order”); Eighth Report and Order, FCC 02-34, 17 FCC Rcd 2962
(2002); Second Order on Reconsideration of the Third Report and Order and Order on Reconsideration of the Fifth
Report and Order, FCC 03-98, 18 FCC Rcd 10180 (2003); Second Order on Reconsideration of the Fifth Report
and Order, FCC 04-295, 20 FCC Rcd 1942 (2005).
30
47 C.F.R. §§ 73.1 – 73.190, 73.1001 – 73.5009.
31
See, e.g., Broadcast First Report and Order, 13 FCC Rcd at 15920; Broadcast Second Reconsideration Order, 14
FCC Rcd at 12541; NCE Second Report and Order, 18 FCC Rcd at 6691; NCE Third Reconsideration Order, 23
FCC Rcd at 17423.
Federal Communications Commission DA 14-63
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duplicating contractor, Best Copy and Printing, Inc. (“BCPI”), 445 12th Street, SW, Room CY-B402,
Washington, DC 20554, 800-378-3160 or at http://www.bcpiweb.com.
32
2. Prohibited Communications and Compliance with Antitrust Laws
12. To ensure the competitiveness of the auction process, section 1.2105(c) of the
Commission’s rules prohibits auction applicants for construction permits in any of the same geographic
license areas from communicating with each other about bids, bidding strategies, or settlements unless
such applicants have identified each other on their short-form applications (FCC Form 175) as parties
with whom they have entered into agreements pursuant to section 1.2105(a)(2)(viii).
33
a. Entities Subject to Section 1.2105
13. Section 1.2105(c)’s prohibition on certain communications applies to any applicants that
submit short-form applications seeking to participate in a Commission auction for construction permits in
the same geographic license area. Thus, unless they have identified each other on their short-form
applications as parties with whom they have entered into agreements under section 1.2105(a)(2)(viii),
applicants for any of the same geographic license areas must affirmatively avoid all communications with
or disclosures to each other that affect or have the potential to affect bids or bidding strategy.
34
In some
instances, this prohibition extends to communications regarding the post-auction market structure. This
prohibition applies to all applicants regardless of whether such applicants become qualified bidders
or actually bid.
35
In broadcast services, the “geographic license area” is the market designation of the
particular service.
36
In Auction 84, this prohibition applies to all applicants that have applied for
construction permits for either the same geographic license area or the same MX group.
14. Applicants are also reminded that, for purposes of this prohibition on certain
communications, section 1.2105(c)(7)(i) defines “applicant” as including all officers and directors of the
entity submitting a short-form application to participate in the auction, all controlling interests of that
entity, as well as all holders of partnership and other ownership interests and any stock interest amounting
to 10 percent or more of the entity, or outstanding stock, or outstanding voting stock of the entity
submitting a short-form application.
37
For example, where an individual served as an officer for two or
more applicants, the Bureaus have found that the bids and bidding strategies of one applicant are
32
When ordering documents from BCPI, please provide the appropriate FCC document number (for example, DA
13-2168 for the Auction 84 Comment Public Notice, or DA 14-63 for this Public Notice).
33
See 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c)(1), 73.5002; see also Part 1 Seventh Report and Order, 16 FCC
Rcd at 17546.
34
See, e.g., Wireless Telecommunications Bureau Provides Guidance on the Anti-Collusion Rule for D, E and F
Block Bidders, Public Notice, DA 96-1460, 11 FCC Rcd 10134 (WTB 1996).
35
See, e.g., Star Wireless, LLC, Forfeiture Order, DA 04-3026, 19 FCC Rcd 18626, 18628 ¶ 4 & n.19 (EB 2004),
order granted in part sub nom, Star Wireless, LLC and Northeast Communications of Wisconsin, Inc., Order on
Review, FCC 07-80, 22 FCC Rcd 8943 (2007)(“Star and Northeast Review Order”), petition for review denied, Star
Wireless, LLC v. FCC, 522 F.3d 469 (D.C. Cir. 2008) (section 1.2105(c) applies to applicants regardless of whether
they are qualified to bid); Letter to Robert Pettit,[Esquire], from Margaret W. Wiener, Chief, Auctions and Industry
Analysis Division, DA 00-2905, 16 FCC Rcd 10080 (WTB 2000) (declining to exempt an applicant’s controlling
interest from coverage by the communication prohibitions of section 1.2105(c), even though the applicant never
made an upfront payment for the auction and was not listed as a qualified bidder).
36
Part 1 Seventh Report and Order, 16 FCC Rcd at 17549 n.12.
37
47 C.F.R. § 1.2105(c)(7)(i).
Federal Communications Commission DA 14-63
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conveyed to the other applicant, and, absent a disclosed bidding agreement, an apparent violation of
section 1.2105(c) occurs.
38
15. Individuals and entities subject to section 1.2105(c) should take special care in
circumstances where their employees may receive information directly or indirectly relating to any
competing applicant’s bids or bidding strategies. While the Bureaus have not addressed a situation where
non-principals (i.e., those who are not officers or directors, and thus not considered to be the applicant)
receive information regarding a competing applicant’s bids or bidding strategies and whether that
information should be presumed to be communicated to the applicant, vigilance is necessary in these
circumstances to prevent direct or indirect communication of information that affects, or could affect,
bids, bidding strategy, or the negotiation of settlement agreements.
16. An exception to the prohibition on certain communications allows non-controlling
interest holders to obtain interests in more than one competing applicant without violating section
1.2105(c) provided specified conditions are met (including a certification that no prohibited
communications have occurred or will occur), but that exception does not extend to controlling interest
holders.
39
17. Moreover, Auction 84 applicants are encouraged not to use the same individual as an
authorized bidder. A violation of section 1.2105(c) could occur if an individual acts as the authorized
bidder for two or more competing applicants, and conveys information concerning the substance of bids
or bidding strategies between such applicants. Similarly, if the authorized bidders are different
individuals employed by the same organization (e.g., law firm, engineering firm or consulting firm), a
violation similarly could occur.
40
In such a case, at a minimum, applicants should certify on their
applications that precautionary steps have been taken to prevent communication between authorized
bidders, and that the applicant and its bidders will comply with section 1.2105(c).
41
b. Prohibition Applies Until Down Payment Deadline
18. Section 1.2105(c)’s prohibition on certain communications became effective at the initial
short-form application (FCC Form 175) filing deadline pursuant to which a short-form application was
filed in either the filing window announced in the AM Auction 84 Window Notice or the Supplemental
Rockland County Window Notice, and ends at the down payment deadline after the auction closes, which
will be announced in a future public notice.
42
38
See, e.g., Letter to Colby M. May, TCCSA, Inc., d/b/a Trinity Broadcasting Network, from Barbara A. Kreisman,
Chief, Video Division, Media Bureau, and Margaret W. Wiener, Chief, Auctions and Spectrum Access Division,
Wireless Telecommunications Bureau, DA 05-2445, 20 FCC Rcd 14648 (WTB/MB 2005) (“Trinity”) (finding
apparent violation of communication prohibitions of section 1.2105(c) where applicants with mutually exclusive
applications reported sharing same individual as an officer and director and reported having no bidding agreement).
39
47 C.F.R. § 1.2105(c)(4). Specifically, the Commission’s rules permit a party holding a non-controlling,
attributable interest in one applicant to acquire an ownership interest in or entering into a joint bidding arrangement
with other applicants after the short-form application filing deadline, provided that: (i) the attributable interest holder
certifies that it has not and will not communicate with any party concerning the bids or bidding strategies of more
than one of the applicants in which it holds an attributable interest, or with which it has entered into a joint bidding
arrangement; and (ii) the arrangements do not result in a change in control of any of the applicants. 47 C.F.R. §§
1.2105(c)(4)(i), (ii).
40
See Application of Nevada Wireless, Memorandum Opinion and Order, DA 98-1137, 13 FCC Rcd 11973, 11977-
78 ¶¶ 11-12 (WTB 1998) (“Nevada Wireless Order”).
41
Id.
42
47 C.F.R. § 1.2105(c)(1). Specifically, this prohibition took effect on January 30, 2004, for those applicants that
filed pursuant to the AM Auction 84 Window Notice, and took effect on October 5, 2007, for those that filed pursuant
to the Supplemental Rockland County Window Notice.
Federal Communications Commission DA 14-63
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c. Prohibited Communications
19. Applicants must not communicate directly or indirectly about bids or bidding strategy to
other applicants in this auction (as described above).
43
Section 1.2105(c) prohibits not only
communication about an applicant’s own bids or bidding strategy, it also prohibits communication of
another applicant’s bids or bidding strategy.
44
While section 1.2105(c) does not prohibit non-auction-
related business negotiations among auction applicants, each applicant must remain vigilant so as not to
directly or indirectly communicate information that affects, or could affect, bids, bidding strategy, or the
negotiation of settlement agreements.
20. Applicants are cautioned that the Commission remains vigilant about prohibited
communications taking place in other situations. For example, the Commission has warned that
prohibited “communications concerning bids and bidding strategies may include communications
regarding capital calls or requests for additional funds in support of bids or bidding strategies to the extent
such communications convey information concerning the bids and bidding strategies directly or
indirectly.”
45
Moreover, the Commission has found a violation of section 1.2105(c) where an applicant
used the Commission’s bidding system to disclose “its bidding strategy in a manner that explicitly invited
other auction participants to cooperate and collaborate in specific markets,”
46
and has placed auction
participants on notice that the use of its bidding system “to disclose market information to competitors
will not be tolerated and will subject bidders to sanctions.”
47
Applicants also should use caution in their
dealings with other parties, such as members of the press, financial analysts, or others who might become
conduits for the communication of prohibited bidding information. For example, an applicant’s statement
to the press that it intends to stop bidding in the auction could give rise to a finding of a section 1.2105(c)
violation.
48
Similarly, an applicant’s public statement of intent not to participate in Auction 84 bidding
could also violate the rule. Applicants are hereby placed on notice that public disclosure of information
relating to bids, or bidding strategies, or to post-auction market structures may violate section 1.2105(c).
d. Disclosure of Bidding Agreements and Arrangements
21. The Commission’s rules do not prohibit applicants from entering into otherwise lawful
bidding agreements before filing their short-form applications, as long as they disclose the existence of
the agreement(s) in their short-form applications.
49
Applicants must identify in their short-form
applications all parties with whom they have entered into any agreements, arrangements, or
43
Part 1 Seventh Report and Order, 16 FCC Rcd at 17553-54 ¶ 14. For a discussion of the term “applicant” within
the meaning of section 1.2105(c), see Section I.B.2.a above.
44
See Notice of Apparent [L]iability for Forfeiture of Western PCS BTA 1 Corp., Memorandum Opinion and
Order, FCC 99-385, 14 FCC Rcd 21571, 21574 ¶ 8 (1999).
45
Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No. 93-253,
Memorandum Opinion and Order, FCC 94-295, 9 FCC Rcd 7684, 7689 ¶ 12 (1994) (“Competitive Bidding
Memorandum Opinion and Order”).
46
Mercury PCS II, LLC, Notice of Apparent Liability for Forfeiture, FCC 97-388, 12 FCC Rcd 17970, 17974 ¶ 12,
17976 ¶ 17 (1997).
47
Mercury PCS II, LLC, Memorandum Opinion and Order, FCC 98-203, 13 FCC Rcd 23755, 23760 ¶ 11 (1998).
48
CompareWireless Telecommunications Bureau Responds to Questions About the Local Multipoint Distribution
Service Auction, Public Notice, DA 98-37, 13 FCC Rcd 341, 347-48 (1998) (“Public statements can give rise to
collusion concerns. This has occurred in the antitrust context, where certain public statements can support other
evidence which tends to indicate the existence of a conspiracy.”).
49
47 C.F.R. § 1.2105(c)(1).
Federal Communications Commission DA 14-63
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understandings of any kind relating to the construction permits being auctioned, including any agreements
relating to post-auction market structure.
50
22. If parties agree in principle on all material terms prior to the short-form application filing
deadline, each party to the agreement must identify the other party or parties to the agreement on its short-
form application under section 1.2105(c), even if the agreement has not been reduced to writing. If the
parties did not reach any such agreement by the short-form filing deadline, they may not negotiate,
discuss or communicate with any other applicants any information covered by the rule until after the
down payment deadline following the close of the auction.
51
23. Section 1.2105(c) does not prohibit non-auction-related business negotiations among
auction applicants.
52
However, certain discussions or exchanges could touch upon impermissible subject
matters because they may convey pricing information and bidding strategies. Such subject areas include,
but are not limited to, issues such as management, sales, local marketing agreements, rebroadcast
agreements, and other transactional agreements.
53
e. Section 1.2105(c) Certification
24. By electronically submitting a short-form application, each applicant in Auction 84
certified its compliance with sections 1.2105(c) and 73.5002(d). In particular, each applicant has certified
under penalty of perjury that it has not entered and will not enter into any explicit or implicit agreements,
arrangements or understandings of any kind with any parties, other than those identified in the
application, regarding the amount of the applicant’s bids, bidding strategies, or the particular construction
permits on which it will or will not bid.
54
However, the Bureaus caution that merely having filed a
certifying statement as part of an application will not outweigh specific evidence that a prohibited
communication has occurred, nor will it preclude the initiation of an investigation when warranted.
55
The
Commission has stated that it “intend[s] to scrutinize carefully any instances in which bidding patterns
suggest that collusion may be occurring.”
56
Any applicant found to have violated section 1.2105(c) may
be subject to sanctions.
57
f. Duty to Report Prohibited Communications
25. Section 1.2105(c)(6) provides that any applicant that makes or receives a communication
that appears to violate section 1.2105(c) must report such communication in writing to the Commission
50
47 C.F.R. §§ 1.2105(a)(2)(viii), (c)(1).
51
See Wireless Telecommunications Bureau Clarifies Spectrum Auction Anti-Collusion Rules, Public Notice, DA
95-2244, 11 FCC Rcd 9645, 9646 (WTB 1995) (“Anti-Collusion Public Notice”).
52
See, e.g., Todd Stuart Noordyk, Memorandum Opinion and Order, FCC 01-275, 16 FCC Rcd 18113, 18116-17
¶ 12 (2001).
53
See Amendment of Part 1 of the Commission's Rules – Competitive Bidding Procedures, WT Docket No. 97-82,
Third Report and Order and Second Further Notice of Proposed Rule Making, FCC 97-413, 13 FCC Rcd 374, 467-
68 ¶ 163 (1997) (“Part 1 Third Report and Order”).
54
47 C.F.R. § 1.2105(a)(2)(ix). The Bureaus suspended application of the section 1.2105(c) and 73.5002(d)
prohibitions during certain periods for the limited purpose of allowing settlement discussions. See, e.g.,
Supplemental AM Auction 84 Mutually Exclusive Applicants Subject to Auction, Settlement Period Announced,
Public Notice, DA 09-2196, 24 FCC Rcd 12522 (MB/WTB 2009). Discussions of information covered by the rules
outside of those windows would violate the rules.
55
Nevada Wireless Order, 13 FCC Rcd at 11978 ¶ 13.
56
Competitive Bidding Memorandum Opinion and Order, 9 FCC Rcd at 7689 ¶ 12.
57
See 47 C.F.R. §§ 1.2105(c), 1.2107(d), and 1.2109(d).
Federal Communications Commission DA 14-63
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immediately, and in no case later than five business days after the communication occurs.
58
The
Commission has clarified that each applicant’s obligation to report any such communication continues
beyond the five-day period after the communication is made, even if the report is not made within the
five-day period.
59
26. In addition, section 1.65 of the Commission’s rules requires an applicant to maintain the
accuracy and completeness of information furnished in its pending application and to notify the
Commission of any substantial change that may be of decisional significance to that application.
60
Thus,
section 1.65 requires an auction applicant to notify the Commission of any substantial change to the
information or certifications included in its pending short-form application. An applicant is therefore
required by section 1.65 to report to the Commission any communication the applicant has made to or
received from another applicant after the short-form application filing deadline that affects or has the
potential to affect bids or bidding strategy, unless such communication is made to or received from a
party to an agreement identified under section 1.2105(a)(2)(viii).
61
27. Sections 1.65(a) and 1.2105(c) require each applicant in competitive bidding proceedings
to furnish additional or corrected information within five days of a significant occurrence, or to amend its
short-form application no more than five days after the applicant becomes aware of the need for
amendment.
62
These rules are intended to facilitate the auction process by making the information
available promptly to all participants and to enable the Bureaus to act expeditiously on those changes
when such action is necessary.
63
g. Procedure for Reporting Prohibited Communications
28. A party reporting any communication pursuant to sections 1.65, 1.2105(a)(2), or
1.2105(c)(6) must take care to ensure that any report of a prohibited communication does not itself give
rise to a violation of section 1.2105(c). For example, a party’s report of a prohibited communication
could violate the rule by communicating prohibited information to other applicants through the use of
Commission filing procedures that would allow such materials to be made available for public inspection.
29. Section 1.2105(c) requires parties to file only a single report concerning a prohibited
communication and to file that report with Commission personnel expressly charged with administering
the Commission’s auctions.
64
This rule is designed to minimize the risk of inadvertent dissemination of
information in such reports. Any reports required by section 1.2105(c) must be filed consistent with the
instructions set forth in this Public Notice.
65
For Auction 84, such reports must be filed with the Chief of
the Auctions and Spectrum Access Division, Wireless Telecommunications Bureau, by the most
expeditious means available. Any such report should be submitted by e-mail to Margaret W. Wiener at
58
47 C.F.R. § 1.2105(c)(6); see also Part 1 Seventh Report and Order, 16 FCC Rcd at 17553-55 ¶¶ 13-17.
59
See Service Rules for the 698-746, 747-762 and 777-792 MHz Bands, WT Docket No. 06-150, Second Report
and Order, FCC 07-132, 22 FCC Rcd 15289, 15395 ¶¶ 285-86 (2007).
60
47 C.F.R. § 1.65; see also Part 1 Seventh Report and Order, 16 FCC Rcd at 17550-51 ¶ 9.
61
See Part 1 Seventh Report and Order, 16 FCC Rcd at 17550-51 ¶ 9.
62
Procedural Amendments to Commission Part 1 Competitive Bidding Rules, WT Docket No. 10-18, Order, FCC
10-4, 25 FCC Rcd 521, 523 ¶ 8 (2010) (“Part 1 Procedural Amendments Order”).
63
Id.
64
Id., 25 FCC Rcd at 522 ¶ 4. This process differs from filing procedures used in connection with other
Commission rules and processes which may call for submission of filings to the Commission’s Office of the
Secretary or ECFS. Filing through the Office of Secretary or ECFS could allow the report to become publicly
available and might result in the communication of prohibited information to other auction applicants.
65
Id.
Federal Communications Commission DA 14-63
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the following e-mail address: auction84@fcc.gov. If you choose instead to submit a report in hard copy,
any such report must be delivered only to: Margaret W. Wiener, Chief, Auctions and Spectrum Access
Division, Wireless Telecommunications Bureau, Federal Communications Commission, 445 12
th
Street,
SW, Room 6423, Washington, DC 20554.
30. A party seeking to report such a prohibited communication should consider submitting its
report with a request that the report or portions of the submission be withheld from public inspection by
following the procedures specified in section 0.459 of the Commission’s rules.
66
Such parties also are
encouraged to coordinate with the Auctions and Spectrum Access Division staff about the procedures for
submitting such reports.
67
This Public Notice provides additional guidance on procedures for submitting
application-related information below.
68
h. Winning Bidders Must Disclose Terms of Agreements
31. Each applicant that is a winning bidder will be required to disclose in its long-form
application the specific terms, conditions, and parties involved in any agreement it has entered into. This
applies to any bidding consortia, joint venture, partnership, or agreement, understanding, or other
arrangement entered into relating to the competitive bidding process, including any agreement relating to
the post-auction market structure.
69
Failure to comply with the Commission’s rules can result in
enforcement action.
i. Additional Information Concerning Rule Prohibiting Certain
Communications
32. A summary listing of documents issued by the Commission and the Bureaus addressing
the application of section 1.2105(c) may be found in Attachment E. These documents are available on the
Commission’s auction web page at http://wireless.fcc.gov/auctions/prohibited_communications.
j. Antitrust Laws
33. Regardless of compliance with the Commission’s rules, applicants remain subject to the
antitrust laws, which are designed to prevent anticompetitive behavior in the marketplace.
70
Compliance
with the disclosure requirements of section 1.2105(c) will not insulate a party from enforcement of the
antitrust laws.
71
For instance, a violation of the antitrust laws could arise out of actions taking place well
66
See 47 C.F.R. § 0.459 (requests that materials or information submitted to the Commission be withheld from
public inspection). Filers requesting confidential treatment of documents must be sure that the cover page of the
filing prominently displays that the documents seek confidential treatment. For example, a filing might include a
cover page stamped with “Request for Confidential Treatment Attached” or “Not for Public Inspection.” Any such
request must cover all of the material to which the request applies. See 47 C.F.R. § 0.459(a).
67
See Section VI “Contact Information,” below.
68
See Section II. C “Maintaining Current Information in Short-Form Applications,” below.
69
47 C.F.R. § 1.2107(d).
70
See Amendment of Part 1 of the Commission's Rules – Competitive Bidding Procedures, WT Docket No. 97-82,
Third Further Notice of Proposed Rulemaking, FCC 99-384, 14 FCC Rcd 21558, 21560-61 ¶ 4 & n.17 (1999)
quoting Competitive Bidding Memorandum Opinion and Order, 9 FCC Rcd at 7689 ¶ 12 (“[W]e wish to emphasize
that all applicants and their owners continue to be subject to existing antitrust laws. Applicants should note that
conduct that is permissible under the Commission's Rules may be prohibited by the antitrust laws.”);
Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No. 93-253,
Fourth Memorandum Opinion and Order, FCC 94-264, 9 FCC Rcd 6858, 6869 n.134 (1994)(“[A]pplicants will also
be subject to existing antitrust laws.”) (“Fourth Memorandum Opinion and Order”).
71
See Competitive Bidding Memorandum Opinion and Order, 9 FCC Rcd at 7689 ¶ 12. See also “Justice
Department Sues Three Firms Over FCC Auction Practices,” Press Release 98-536 (DOJ Nov. 10, 1998).
Federal Communications Commission DA 14-63
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before any party submitted a short-form application.
72
Similarly, the Wireless Telecommunications
Bureau previously reminded potential applicants and others that “[e]ven where the applicant discloses
parties with whom it has reached an agreement on the short-form application, thereby permitting
discussions with those parties, the applicant is nevertheless subject to existing antitrust laws.”
73
34. To the extent the Commission becomes aware of specific allegations that suggest that
violations of the federal antitrust laws may have occurred, the Commission may refer such allegations to
the United States Department of Justice for investigation.
74
If an applicant is found to have violated the
antitrust laws or the Commission’s rules in connection with its participation in the competitive bidding
process, it may be subject to forfeiture of its upfront payment, down payment, or full bid amount and may
be prohibited from participating in future auctions, among other sanctions.
75
3. Due Diligence
35. We remind each potential bidder that it is solely responsible for investigating and
evaluating all technical and marketplace factors that may have a bearing on the value of the construction
permits for AM broadcast facilities that it is seeking in this auction. Each bidder is responsible for
assuring that, if it wins a construction permit, it will be able to build and operate facilities in accordance
with the Commission’s rules. The FCC makes no representations or warranties about the use of this
spectrum for particular services. Applicants should be aware that an FCC auction represents an
opportunity to become an FCC permittee in a broadcast service, subject to certain conditions and
regulations. An FCC auction does not constitute an endorsement by the FCC of any particular
service, technology, or product, nor does an FCC construction permit or license constitute a
guarantee of business success.
36. An applicant should perform its due diligence research and analysis before proceeding, as
it would with any new business venture. In particular, the Bureaus strongly encourage each potential
bidder to perform technical analyses and/or refresh its previous analyses to assure itself that, should it
become a winning bidder for any Auction 84 construction permit, it will be able to build and operate
facilities that will fully comply with all applicable technical and legal requirements. We strongly
encourage each applicant to inspect any prospective transmitter sites located in, or near, the service area
for which it plans to bid, confirm the availability of such sites, and to familiarize itself with the
Commission’s rules regarding the National Environmental Policy Act.
76
37. The Bureaus strongly encourage each applicant to conduct its own research prior to
Auction 84 in order to determine the existence of pending administrative or judicial proceedings that
might affect its decision to participate in the auction. The Bureaus strongly encourage each participant in
Auction 84 to continue such research throughout the auction. The due diligence considerations
mentioned in this Public Notice do not comprise an exhaustive list of steps that should be undertaken
72
See, e.g., Fourth Memorandum Opinion and Order, 9 FCC Rcd at 6869 n.134. The Commission has cited a
number of examples of potentially anticompetitive actions that would be prohibited under antitrust laws. For
example, actual or potential competitors may not agree to divide territories in order to minimize competition,
regardless of whether they split a market in which they both do business, or whether they merely reserve one market
for one and another market for the other. Id.
73
Anti-Collusion Public Notice, 11 FCC Rcd at 9646.
74
See Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No. 93-253,
Second Report and Order, FCC 94-61, 9 FCC Rcd 2348, 2388 ¶ 226 (1994) (“Competitive Bidding Second Report
and Order”).
75
See 47 C.F.R. § 1.2109(d); see also Competitive Bidding Second Report and Order, 9 FCC Rcd at 2388 ¶ 226.
76
47 C.F.R. Part 1, Subpart I.
Federal Communications Commission DA 14-63
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prior to participating in this auction. As always, the burden is on the potential bidder to determine how
much research to undertake, depending upon specific facts and circumstances related to its interests.
38. The Bureaus also remind each applicant that pending and future judicial proceedings, as
well as certain pending and future proceedings before the Commission — including applications,
applications for modification, petitions for rulemaking, requests for special temporary authority, waiver
requests, petitions to deny, petitions for reconsideration, informal objections, and applications for review
— may relate to particular applicants, incumbent permittees, incumbent licensees, or the construction
permits available in Auction 84. Each prospective applicant is responsible for assessing the likelihood of
the various possible outcomes and for considering the potential impact on construction permits available
in this auction.
39. Applicants are solely responsible for identifying associated risks and for
investigating and evaluating the degree to which such matters may affect their ability to bid on,
otherwise acquire, or make use of the construction permits available in Auction 84. Each potential
bidder is responsible for undertaking research to ensure that any permits won in this auction will be
suitable for its business plans and needs. Each potential bidder must undertake its own assessment of the
relevance and importance of information gathered as part of its due diligence efforts.
40. Applicants may research the licensing database for the Media Bureau in order to
determine which channels are already licensed to incumbent licensees or previously authorized to
construction permittees. Licensing records are contained in the Consolidated Data Base System (CDBS)
and may be researched on the Internet from http://www.fcc.gov/encyclopedia/media-bureau-filing-
systems-and-databases. Potential bidders may query the database online and download a copy of their
search results if desired. Instructions on using Station Search, Ownership Search, and Application Search
and downloading query results are also available online via the above link. The database searches return
either station or application data. The application search provides an application link that displays the
complete electronically filed application in application format. An AL/TC search under the Application
Search link permits searching for Assignment of License/Transfer of Control groups using the AL/TC
group lead application. Potential bidders should direct questions regarding the search capabilities of
CDBS to the Media Bureau help line at (202) 418-2662, or via e-mail at mbinfo@fcc.gov.
41. The Commission makes no representations or guarantees regarding the accuracy or
completeness of information in its databases or any third party databases, including, for example, court
docketing systems. To the extent the Commission’s databases may not include all information deemed
necessary or desirable by an applicant, it must obtain or verify such information from independent sources
or assume the risk of any incompleteness or inaccuracy in said databases. Furthermore, the Commission
makes no representations or guarantees regarding the accuracy or completeness of information that has
been provided by incumbent licensees and incorporated into its databases.
4. Use of Integrated Spectrum Auction System
42. Bidders will be able to participate in Auction 84 over the Internet using the
Commission’s web-based Integrated Spectrum Auction System (“ISAS” or “FCC Auction System”). The
Commission makes no warranty whatsoever with respect to the FCC Auction System. In no event shall
the Commission, or any of its officers, employees, or agents, be liable for any damages whatsoever
(including, but not limited to, loss of business profits, business interruption, loss of business information,
or any other loss) arising out of or relating to the existence, furnishing, functioning, or use of the FCC
Auction System that is accessible to qualified bidders in connection with this auction. Moreover, no
obligation or liability will arise out of the Commission’s technical, programming, or other advice or
service provided in connection with the FCC Auction System.
Federal Communications Commission DA 14-63
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5. Fraud Alert
43. As is the case with many business investment opportunities, some unscrupulous
entrepreneurs may attempt to use Auction 84 to deceive and defraud unsuspecting investors. Common
warning signals of fraud include the following:
? The first contact is a “cold call” from a telemarketer, or is made in response to an inquiry
prompted by a radio or television infomercial.
? The offering materials used to invest in the venture appear to be targeted at IRA funds, for
example, by including all documents and papers needed for the transfer of funds maintained in
IRA accounts.
? The amount of investment is less than $25,000.
? The sales representative makes verbal representations that: (a) the Internal Revenue Service,
Federal Trade Commission (“FTC”), Securities and Exchange Commission (“SEC”), FCC, or
other government agency has approved the investment; (b) the investment is not subject to state
or federal securities laws; or (c) the investment will yield unrealistically high short-term profits.
In addition, the offering materials often include copies of actual FCC releases, or quotes from
FCC personnel, giving the appearance of FCC knowledge or approval of the solicitation.
44. Information about deceptive telemarketing investment schemes is available from the FCC
as well as the FTC and SEC. Additional sources of information for potential bidders and investors may
be obtained from the following sources:
? the FCC’s Consumer Call Center at (888) 225-5322 or by visiting
http://wireless.fcc.gov/csinfo#fraud
? the FTC at (877) FTC-HELP ((877) 382-4357) or by visiting
http://ftc.gov/bcp/edu/pubs/consumer/invest/inv03.shtm
? the SEC at (202) 942-7040 or by visiting
http://sec.gov/cgi-bin/txt-srch-sec?text=fraud&section=Investor+Information.
Complaints about specific deceptive telemarketing investment schemes should be directed to the FTC, the
SEC, or the National Fraud Information Center at (800) 876-7060.
6. Environmental Review Requirements
45. Permittees or licensees must comply with the Commission’s rules regarding
implementation of the National Environmental Policy Act and other federal environmental statutes.
77
The
construction of a broadcast facility is a federal action, and the permittee or licensee must comply with the
Commission’s environmental rules for each such facility.
78
These environmental rules require, among
other things, that the permittee or licensee consult with expert agencies having environmental
responsibilities, including the U.S. Fish and Wildlife Service, the State Historic Preservation Office, the
U.S. Army Corps of Engineers, and the Federal Emergency Management Agency (through the local
authority with jurisdiction over floodplains). In assessing the effect of facility construction on historic
properties, the permittee or licensee must follow the provisions of the FCC’s Nationwide Programmatic
Agreement Regarding the Section 106 National Historic Preservation Act Review Process.
79
The
77
47 C.F.R. Part 1, Subpart I.
78
47 C.F.R. §§ 1.1301-1.1319.
79
47 C.F.R. Part 1, Appendix C.
Federal Communications Commission DA 14-63
17
permittee or licensee must prepare environmental assessments for any facility that may have a significant
impact in or on wilderness areas, wildlife preserves, threatened or endangered species, or designated
critical habitats, historical or archaeological sites, Indian religious sites, floodplains, and surface features.
In addition, the permittee or licensee must prepare environmental assessments for facilities that include
high intensity white lights in residential neighborhoods or excessive radio frequency emission.
C. Auction Specifics
1. Auction Start Date
46. Bidding in Auction 84 will begin on Tuesday, May 6, 2014. Pre-auction dates and
deadlines are listed below.
47. The initial schedule for bidding rounds will be announced by public notice at least one
week before the auction starts. Moreover, unless otherwise announced, bidding on all construction
permits will be conducted on each business day until bidding has stopped on all construction permits.
2. Auction Title
48. Auction 84 – AM Broadcast
3. Bidding Methodology
49. As discussed in more detail below, the bidding methodology for Auction 84 will be a
simultaneous multiple round format.
80
The Commission will conduct this auction over the Internet using
the FCC Auction System. Qualified bidders are permitted to bid electronically via the Internet or by
telephone using the telephonic bidding option. All telephone calls are recorded.
4. Pre-Auction Dates and Deadlines
50. The following dates and deadlines apply:
Auction Tutorial Available (via Internet) .........................February 19, 2014
Short-Form Application (FCC Form 175)
Remedial Filing Window Opens.......................................February 19, 2014; 12:00 noon ET
Short-Form Application (FCC Form 175)
Remedial Filing Window Deadline...................................March 4, 2014; prior to 6:00 p.m. ET
Upfront Payments (via wire transfer)................................April 7, 2014; 6:00 p.m. ET
Mock Auction ...................................................................May 2, 2014
Auction Begins..................................................................May 6, 2014
5. Requirements for Participation
51. Those wishing to participate in this auction must:
? Be listed as an applicant on Attachment A of this Public Notice;
? Have submitted a short-form application (FCC Form 175) that complies with the Commission’s
competitive bidding rules and the procedures and deadlines set forth in this Public Notice;
o Ensuring that Short-Form Application is Complete: Each applicant should review, verify
and, if necessary, update its previously-filed short-form application (FCC Form 175).
o Updating Short-Form Application in FCC Auction System: Each applicant will have an
opportunity to review and, if necessary, update its previously-filed short-form application
80
See Section IV.A.1, “Simultaneous Multiple Round Auction,” below.
Federal Communications Commission DA 14-63
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by following the electronic filing procedures set forth in Attachment B to this Public
Notice;
? For example, an applicant may need to update its previously-filed short-form
application if information contained in the application has changed, information
required by the Commission’s competitive bidding rules had been omitted or was
incomplete, or it believes that information or its compliance with auction
requirements requires further description or explanation;
? Minor Changes Only: An applicant may submit only a “minor amendment” to
its application during the upcoming remedial and resubmission filing windows.
81
o Windows for Review and Update of Short-Form Applications: Review and update of
applications must be completed within the following filing windows:
? Remedial Filing Window: Applicants will have an opportunity to review and
update their short-form applications electronically using the FCC’s web-based
Auction System during a remedial filing window that will open on February 19,
2014, and will close on March 4, 2014 at 6:00 PM Eastern Time (ET).
Commission staff will review all short-form applications (including previously-
filed Forms 175 and those updated during the remedial filing window) to assess
their compliance with the Commission’s competitive bidding rules.
? Resubmission Filing Window: An applicant whose application is found to
contain deficiencies after the close of the remedial filing window will be
provided with a limited opportunity to bring its application into compliance with
the Commission’s competitive bidding rules during a resubmission window, the
dates for which will be announced in a future public notice.
? Submit a sufficient upfront payment and an FCC Remittance Advice Form (FCC Form 159) by
6:00 p.m. ET, on April 7, 2014, following the procedures and instructions set forth in Attachment
C to this Public Notice; and
? Comply with all provisions outlined in this Public Notice and applicable Commission rules.
II. SHORT-FORM APPLICATION (FCC FORM 175) REQUIREMENTS
A. Updating Applicant’s FCC Form 175 in Integrated Spectrum Auction System –
Remedial Filing Window Closes March 4, 2014
52. To qualify to participate in the bidding, each Auction 84 applicant must have submitted a
short-form application (FCC Form 175) in the Integrated Spectrum Auction System (ISAS) that complies
with the Commission’s competitive bidding rules and the procedures and deadlines set forth in this Public
Notice. Each applicant should review its previously-filed Form 175 and verify the accuracy of all
information in its application. If an applicant updates information in its short-form, it will need to fully
complete the electronic form and certify the application in order to bring its short-form application into
compliance with the current version of ISAS because changes to the system have been implemented since
these applications were initially submitted. Attachment B to this Public Notice contains detailed
instructions for updating and verifying short-form applications.
53. Applicants will have an opportunity to make any updates and verify short-form
application information during a remedial filing window. This window will open noon ET on
Wednesday, February 19, 2014, and will close at 6:00 p.m. ET on Tuesday, March 4, 2014.
81
47 C.F.R. § 1.2105(b)(2). For additional guidance on the permissible amendments during these windows, see
Section II.B, “Minor Modifications to Short-Form Applications,” below.
Federal Communications Commission DA 14-63
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54. Each Auction 84 applicant should review its FCC Form 175 in ISAS to assure that all
relevant information is provided and that the information contained in the application is accurate and
complete. Some applicants may also need to provide updates or revisions of previously-submitted
information, consistent with the requirement of section 1.65 of the rules.
82
To insure that the FCC Form
175 is accurate and complete, each applicant must review carefully all of the information provided in this
public notice, including the section regarding declarations as to former defaults and delinquencies.
83
B. Minor Modifications to Short-Form Applications
55. Following the short-form application deadline, an Auction 84 applicant is permitted to
make only minor changes to its application.
84
Permissible minor changes include, among other things,
deletion and addition of authorized bidders (to a maximum of three) and revision of addresses and
telephone numbers of the applicants and their contact persons. If revised or updated information
constitutes a “major amendment,” as defined by section 1.2105, such changes may result in the dismissal
of the application.
85
In this context, major amendments include a change of technical proposals, change
control of the applicant, claim eligibility for a higher percentage of bidding credit, or change the
identification of the application’s proposed facilities as noncommercial educational after the initial
application filing deadline.
86
C. Maintaining Current Information in Short-Form Applications
56. Sections 1.65 and 1.2105(b) of the Commission’s rules require an applicant to maintain
the accuracy and completeness of all information furnished in its pending application and in competitive
bidding proceedings to furnish additional or corrected information to the Commission within five days of
a significant occurrence,
87
or to amend a short form application no more than five days after the applicant
becomes aware of the need for the amendment.
88
Changes that cause a loss of or reduction in the
percentage of bidding credit specified on the originally-submitted application must be reported
immediately, and no later than five business days after the change occurs.
89
82
47 C.F.R. § 1.65.
83
See infra Section II. G.
84
47 C.F.R. § 1.2105(b)(2).
85
Id.
86
None of the AM stations listed in Attachment A are proposed as noncommercial educational facilities. See 47
U.S.C. §§ 309(j)(2)(C), 397(6)(B).
87
We remind each applicant of its duty to continuously maintain the accuracy of information submitted in its
auction application. See, e.g., Vermont Telephone Co., Notice of Apparent Liability for Forfeiture, DA 11-1536, 26
FCC Rcd 14130 (EB 2011).
88
47 C.F.R. §§ 1.65, 1.2105(b). See also Part 1 Procedural Amendments Order, 25 FCC Rcd at 523 ¶ 8.
89
See 47 C.F.R. § 73.5007(a). See also Policies to Promote Rural Radio Service and to Streamline Allotment and
Assignment Procedures, MB Docket No. 09-52, First Report and Order and Further Notice of Proposed Rule
Making, FCC 10-24, 25 FCC Rcd 1583, 1611-14 ¶¶ 57-63 (2010). For example, if ownership changes result in the
attribution of new interest holders that affect the applicant’s qualifications for a new entrant bidding credit, such
information must be clearly stated in the bidder’s amendment. See Liberty Productions, MM Docket No. 88-577,
Memorandum Opinion and Order, FCC 01-129, 16 FCC Rcd 12061, 12077-78 ¶¶ 34-37 (2001). Events occurring
after the initial application filing deadline, such as the acquisition of attributable interests in media of mass
communications, may also cause diminishment or loss of the bidding credit, and must be reported immediately, and
no later than five business days after the change occurs.
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D. Submission of Updates to Short-Form Applications
57. Updates to short-form applications should be made electronically using the FCC Auction
System whenever possible. For the change to be submitted and considered by the Commission, be sure to
click on the SUBMIT button.
90
58. An applicant cannot use the FCC Auction System outside of the remedial and
resubmission filing windows to make changes to its short-form application for other than administrative
changes (e.g., changing contact information or the name of an authorized bidder). After the filing
window has closed, the system will not permit applicants to modify information in most of the
application’s data fields.
59. If changes need to be made outside of these windows, the applicant must submit a letter
briefly summarizing the changes and subsequently update its short-form application in the FCC Auction
System once it is available. Any letter describing changes to an applicant’s short-form application must
be submitted by e-mail to auction84@fcc.gov. The e-mail summarizing the changes must include a
subject or caption referring to Auction 84 and the name of the applicant, for example, “Re: Changes to
Auction 84 Short-Form Application of ABC Corp.” The Bureaus request that parties format any
attachments to e-mail as Adobe
®
Acrobat
®
(pdf) or Microsoft
®
Word documents. Questions about short-
form application amendments should be directed to the Auctions and Spectrum Access Division at (202)
418-0660.
60. Applicants must not submit application-specific material through the Commission’s
Electronic Comment Filing System, which was used for submitting comments regarding procedures for
conducting Auction 84.
61. Applicants should note that submission of a short-form application (and any amendments
thereto) constitutes a representation by the person certifying the application that he or she is an authorized
representative of the applicant with authority to bind the applicant, that he or she has read the form’s
instructions and certifications, and that the contents of the application, its certifications, and any
attachments are true and correct. Applicants are reminded that submission of a false certification to the
Commission is a serious matter that may result in severe penalties, including monetary forfeitures, license
revocations, exclusion from participation in future auctions, and/or criminal prosecution.
E. Electronic Review of Short-Form Applications
62. During the remedial window, an applicant may review and update its electronic FCC
Form 175 application in the FCC Auction System. There is no fee to access this system. See Attachment
B for details on accessing ISAS.
63. Applicants will also be able to view other applicants’ completed FCC Form 175
applications after the Commission has issued a public notice announcing the status of the resubmitted
Auction 84 applications. Instructions for electronic review of FCC Form 175 applications will be
discussed in the public notice concerning the status of the applications.
F. Installment Payments
64. Installment payments will not be available in Auction 84.
G. Provisions Regarding Former and Current Defaulters
65. Current defaulters or delinquents are not eligible to participate in Auction 84, but former
defaulters or delinquents can participate so long as they are otherwise qualified and, as discussed in
90
After the revised application has been submitted, a confirmation page will be displayed stating the submission
time, submission date, and a unique file number. The Bureaus advise applicants to retain a copy of this confirmation
page.
Federal Communications Commission DA 14-63
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Section III.D.3 below, make upfront payments that are fifty percent more than would otherwise be
necessary.
91
An applicant is considered a “current defaulter” or a “current delinquent” when it, any of its
affiliates, any of its controlling interests, or any of the affiliates of its controlling interests, is in default on
any payment for any Commission construction permit or license (including a down payment) or is
delinquent on any non-tax debt owed to any Federal agency as of the filing deadline for short-form
applications. An applicant is considered a “former defaulter” or a “former delinquent” when it, any of its
affiliates, any of its controlling interests, or any of the affiliates of its controlling interests, has defaulted
on any Commission construction permit or license or been delinquent on any non-tax debt owed to any
Federal agency, but has since remedied all such defaults and cured all of the outstanding non-tax
delinquencies.
66. On the short-form application, an applicant must certify under penalty of perjury that it,
its affiliates, its controlling interests, or the affiliates of its controlling interests, as defined by section
1.2110 of the Commission’s rules,
92
is not in default on any payment for a Commission construction
permit or license (including down payments) and is not delinquent on any non-tax debt owed to any
Federal agency.
93
Each applicant must also state under penalty of perjury whether it, its affiliates, its
controlling interests, or the affiliates of its controlling interests, has ever been in default on any
Commission construction permit or license or has ever been delinquent on any non-tax debt owed to any
Federal agency.
94
67. Applicants are encouraged to review previous guidance provided by the Wireless
Telecommunications Bureau on default and delinquency disclosure requirements in the context of the
short-form application process.
95
For example, it has been determined that, to the extent that Commission
rules permit late payment of regulatory or application fees accompanied by late fees, such debts will
become delinquent for purposes of sections 1.2105(a) and 1.2106(a) only after the expiration of a final
payment deadline.
96
Therefore, with respect to regulatory or application fees, the provisions of sections
1.2105(a) and 1.2106(a) regarding default and delinquency in connection with competitive bidding are
limited to circumstances in which the relevant party has not complied with a final Commission payment
deadline.
97
Parties are also encouraged to consult with the Wireless Telecommunications Bureau’s
91
47 C.F.R. §§ 1.2105(a)(2)(x), (xi), 1.2105(b)(1), 1.2106(a); see Part 1 Fifth Report and Order, 15 FCC Rcd at
15317 ¶ 42 & n.142 (“If any one of an applicant’s controlling interests or their affiliates…is in default on any
Commission licenses or is delinquent on any non-tax debt owed to any Federal agency at the time the applicant files
it[s] FCC Form 175, the applicant will not be able to make the certification required by section 1.2105(a)(2)(x)…and
will not be eligible to participate in Commission auctions.”).
92
47 C.F.R. § 1.2110.
93
47 C.F.R. § 1.2105(a)(2)(x); see also Part 1 Fifth Report and Order, 15 FCC Rcd at 15317 ¶ 42 & n.142.
94
47 C.F.R. § 1.2105(a)(2)(xi); see also Part 1 Fifth Report and Order, 15 FCC Rcd at 15317 ¶ 42.
95
Wireless Telecommunications Bureau Reminds Prospective Broadband PCS Spectrum Auction Applicants of
Default and Delinquency Disclosure Requirements, Public Notice, DA 04-3491, 19 FCC Rcd 21920 (WTB 2004)
(“Auction Default Disclosure Public Notice”). This public notice may be found at
http://wireless.fcc.gov/auctions/58/.
96
Letter to Cheryl A. Tritt, Esq., from Margaret Wiener, Chief, Auctions and Spectrum Access Division, Wireless
Telecommunications Bureau, DA 04-3685, 19 FCC Rcd 22907 (WTB 2004) (clarifying the term “debt” or “non-tax
debt” as referenced in 47 C.F.R. §§ 1.2105(a) and 1.2106(a)). This letter may be found at
http://wireless.fcc.gov/auctions/58/.
97
Even where Commission rules expressly permit late payment, subject to payment of an additional late fee, and do
not impose a final payment deadline, the Commission may in some cases issue a demand for payment by a date
certain. See 47 C.F.R. § 1.1164(a). Failure to comply with the terms of a demand letter in the time period specified
may render the subject debt delinquent, notwithstanding rules generally permitting late payment.
Federal Communications Commission DA 14-63
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Auctions and Spectrum Access Division staff if they have any questions about default and delinquency
disclosure requirements.
68. The Commission considers outstanding debts owed to the United States Government, in
any amount, to be a serious matter. The Commission adopted rules, including a provision referred to as
the “red light rule,” that implement its obligations under the Debt Collection Improvement Act of 1996,
which governs the collection of debts owed to the United States.
98
Under the red light rule, applications
and other requests for benefits filed by parties that have outstanding debts owed to the Commission will
not be processed. In the same rulemaking order, the Commission explicitly declared, however, that its
competitive bidding rules “are not affected” by the red light rule.
99
As a consequence, the Commission’s
adoption of the red light rule does not alter the applicability of any of its competitive bidding rules,
including the provisions and certifications of sections 1.2105 and 1.2106, with regard to current and
former defaults or delinquencies.
69. Applicants are reminded, however, that the Commission’s Red Light Display System,
which provides information regarding debts currently owed to the Commission, may not be determinative
of an auction applicant’s ability to comply with the default and delinquency disclosure requirements of
section 1.2105.
100
Thus, while the red light rule ultimately may prevent the processing of long-form
applications by auction winners, an auction applicant’s lack of current “red light” status is not necessarily
determinative of its eligibility to participate in an auction or of its upfront payment obligation.
101
70. Moreover, applicants in Auction 84 should note that any long-form applications filed
after the close of bidding will be reviewed for compliance with the Commission’s red light rule,
102
and
such review may result in the dismissal of a winning bidder’s long-form application.
103
III. PRE-AUCTION PROCEDURES
A. Online Auction Tutorial – Available February 19, 2014
71. An educational auction tutorial will be available on the Auction 84 web page by
Wednesday, February 19, 2014. This online tutorial will provide information about pre-auction
procedures, updating previously-filed short-form applications, auction conduct, the FCC Auction Bidding
System, auction rules, and broadcast services rules. The tutorial will also provide an avenue to ask FCC
staff questions about the auction, auction procedures, filing requirements, and other matters related to this
auction.
72. The tutorial will allow viewers to navigate the presentation outline, review written notes,
listen to audio recordings of the notes, and search for topics using a text search function. Additional
features of this web-based tool include links to auction-specific Commission releases, e-mail links for
98
Amendment of Parts 0 and 1 of the Commission's Rules; Implementation of the Debt Collection Improvement Act
of 1996 and Adoption of Rules Governing Applications or Requests for Benefits by Delinquent Debtors, MD
Docket No. 02-339, Report and Order, FCC 04-72, 19 FCC Rcd 6540 (2004) (implementing Pub. L. No. 104-134,
110 Stat. 1321, 1358 (1996)) (“Debt Collection Report and Order”).
99
Id., 19 FCC Rcd at 6541 n.11 (specifically mentions 47 C.F.R. §§ 1.2105(a)(2)(x) and (xi) and states that “[t]hese
rules are not affected by the red light rule.”).
100
Auction Default Disclosure Public Notice, 19 FCC Rcd at 21920 (addressing relationship between Commission’s
Red Light Display System and short-form application default and delinquency disclosure requirements for auction
applicants).
101
Id., 19 FCC Rcd at 21921-22.
102
Debt Collection Report and Order, 19 FCC Rcd at 6540. See 47 C.F.R. § 1.1114.
103
Applicants that have their long-form applications dismissed will be deemed to have defaulted and will be subject
to default payments under 47 C.F.R. §§ 1.2104(g) and 1.2109(c).
Federal Communications Commission DA 14-63
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contacting Commission licensing and auctions staff, a timeline with deadlines for auction preparation, and
screen shots of the online application and bidding system. The tutorial will be accessible through a web
browser with Adobe Flash Player.
104
73. The auction tutorial will be accessible from the FCC’s Auction 84 web page at
http://wireless.fcc.gov/auctions/84/ through an “Auction Tutorial” link. Once posted, this tutorial will
remain available and accessible anytime for reference in connection with the procedures outlined in this
Public Notice.
B. Revised Short-Form Applications – Due Prior to 6:00 p.m. ET on March 4, 2014
74. Each applicant should review its previously-filed, electronic short-form application (FCC
Form 175) via the FCC Auction System.
105
If any information in the short-form application or its
attachments is inaccurate or otherwise needs to be updated, any such changes must be reported in the
Form 175 during the upcoming remedial filing window. Attachment B to this Public Notice contains
instructions for updating short-form applications in the remedial window. Updates to the short-form
application must be submitted prior to 6:00 p.m. ET on March 4, 2014. No application fee is required.
An applicant must also submit a timely upfront payment to be eligible to bid, as discussed below.
106
75. Previously-submitted short-form applications may be viewed and updated at any time
beginning at noon ET on February 19, 2014, until the filing window closes at 6:00 p.m. ET on March 4,
2014. Applicants are strongly encouraged to file early and are responsible for allowing adequate time for
filing their applications. Applications can be updated or amended multiple times until the remedial filing
deadline on March 4, 2014.
76. An applicant must always click on the SUBMIT button on the “Certify & Submit” screen
to successfully submit its FCC Form 175 and any modifications; otherwise the application or changes to
the application will not be received or reviewed by Commission staff. Additional information about
accessing, completing, and viewing the FCC Form 175 is included in Attachment B. FCC Auctions
Technical Support is available at (877) 480-3201, option nine; (202) 414-1250; or (202) 414-1255 (text
telephony (TTY)); hours of service are Monday through Friday, from 8:00 a.m. to 6:00 p.m. ET. In order
to provide better service to the public, all calls to Technical Support are recorded.
C. Application Processing and Corrections of Deficiencies
77. The Commission will process all applications for permits listed in Attachment A to
determine which are complete, and subsequent to the remedial filing window will issue a public notice
identifying those that are complete and those that are incomplete or deficient because of minor defects
that may be corrected. The public notice will include the deadline for addressing deficiencies in
applications.
78. Commission staff will communicate only with an applicant’s contact person or certifying
official, as designated on the short-form application, unless the applicant’s certifying official or contact
person notifies the Commission in writing that applicant’s counsel or other representative is authorized to
speak on its behalf.
107
Authorizations may be sent by e-mail to auction84@fcc.gov.
104
Most users will already have the Flash Player browser plug-in, which can be downloaded from
http://get.adobe.com/flashplayer/.
105
47 C.F.R. § 1.2105(a).
106
See Section III.D “Upfront Payments – Due April 7, 2014,” below.
107
In no event, however, will the FCC send auction registration materials to anyone other than the contact person
listed on the applicant’s FCC Form 175 or respond to a request for replacement registration materials from anyone
other than the authorized bidder, contact person, or certifying official listed on the applicant’s FCC Form 175. See
Section III.F “Auction Registration,” below.
Federal Communications Commission DA 14-63
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D. Upfront Payments – Due April 7, 2014
79. In order to be eligible to bid in this auction, an upfront payment must be submitted and
accompanied by an FCC Remittance Advice Form (FCC Form 159). After completing its short-form
application, an applicant will have access to an electronic version of the FCC Form 159. This Form 159
can be printed and the completed form must be sent by fax to U.S. Bank in St. Louis, Missouri. All
upfront payments must be made as instructed in this Public Notice and must be received in the
proper account at U.S. Bank before 6:00 p.m. ET on April 7, 2014.
1. Making Upfront Payments by Wire Transfer
80. Wire transfer payments must be received before 6:00 p.m. ET on April 7, 2014.
108
No
other payment method is acceptable.
109
To avoid untimely payments, applicants should discuss
arrangements (including bank closing schedules) with their bankers several days before they plan to make
the wire transfer, and allow sufficient time for the transfer to be initiated and completed before the
deadline. The following information will be needed:
ABA Routing Number: 081000210
Receiving Bank: U.S. Bank
1005 Convention Plaza
St. Louis, MO 63101
BENEFICIARY: FCC/Account # 152308790392
Originating Bank Information (OBI Field): (Skip one space between each information item)
“AUCTIONPAY”
APPLICANT FCC REGISTRATION NUMBER (FRN): (same as FCC Form 159, block 21)
PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: “U084”)
FCC CODE 1: (same as FCC Form 159, block 28A: “84”)
PAYER NAME: (same as FCC Form 159, block 2)
LOCKBOX NO: # 979085
NOTE: The BNF and Lockbox number are specific to the upfront payments for this auction. Do not use
BNF or Lockbox numbers from previous auctions.
81. At least one hour before placing the order for the wire transfer (but on the same business
day), applicants must fax a completed FCC Form 159 (Revised 2/03) to U.S. Bank at (314) 418-4232. On
the fax cover sheet, write “Wire Transfer – Auction Payment for Auction 84.” In order to meet the
upfront payment deadline, an applicant’s payment must be credited to the Commission's account for
Auction 84 before the deadline.
110
82. Each applicant is responsible for ensuring timely submission of its upfront payment and
for timely filing of an accurate and complete FCC Remittance Advice Form (FCC Form 159). An
applicant should coordinate with its financial institution well ahead of the due date regarding its wire
transfer and allow sufficient time for the transfer to be initiated and completed prior to the deadline. The
Commission repeatedly has cautioned auction participants about the importance of planning ahead to
prepare for unforeseen last-minute difficulties in making payments by wire transfer.
111
Each applicant
108
An applicant must initiate the wire transfer through its bank, authorizing the bank to wire funds from the
applicant’s account to the Commission’s auction payment lockbox bank, the U.S. Bank in St. Louis, Missouri.
109
The Commission will not accept checks, credit cards, or automated clearing house (ACH) payments.
110
Letter to Lee G. Petro, from Margaret W. Wiener, Chief, Auctions and Spectrum Access Division, Wireless
Telecommunications Bureau, DA 10-1270, 25 FCC Rcd 9046 (Auc. Div. 2010).
111
See, e.g, Letter to David G. O’Neil, Esq. from Margaret W. Wiener, Chief, Auctions and Spectrum Access
Division, Wireless Telecommunications Bureau, DA 08-622, 23 FCC Rcd 4765 (Auc. Div. 2008); Letter to Patrick
(continued….)
Federal Communications Commission DA 14-63
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also is responsible for obtaining confirmation from its financial institution that its wire transfer to
U.S. Bank was successful and from Commission staff that its upfront payment was timely received
and that it was deposited into the proper account. To receive confirmation from Commission staff,
contact Gail Glasser of the Office of Managing Director’s Auctions Accounting Group at (202) 418-0578,
or alternatively, Theresa Meeks at (202) 418-2945.
83. Please note the following information regarding upfront payments:
? All payments must be made in U.S. dollars.
? All payments must be made by wire transfer.
? Upfront payments for Auction 84 go to a lockbox number different from the lockboxes used
in previous FCC auctions.
? Failure to deliver a sufficient upfront payment as instructed herein by the April 7, 2014,
deadline will result in dismissal of the short-form application and disqualification from
participation in the auction.
2. FCC Form 159
84. An accurate and complete FCC Remittance Advice Form (FCC Form 159, Revised 2/03)
must be faxed to U.S. Bank to accompany each upfront payment. Proper completion of this form is
critical to ensuring correct crediting of upfront payments. Detailed instructions for completion of FCC
Form 159 are included in Attachment C. An electronic pre-filled version of the FCC Form 159 is
available after submitting the FCC Form 175. Payers using the pre-filled FCC Form 159 are responsible
for ensuring that all of the information on the form, including payment amounts, is accurate. The FCC
Form 159 can be completed electronically, but it must be filed with U.S. Bank by fax.
3. Upfront Payments and Bidding Eligibility
85. The Commission has delegated to the Bureaus the authority and discretion to determine
appropriate upfront payments for each auction.
112
Upfront payments help deter frivolous or insincere
bidding, and provide the Commission with a source of funds in the event that the bidder incurs liability
during the auction.
86. Applicants that are former defaulters, as described above, must pay upfront payments 50
percent greater than non-former defaulters.
113
For purposes of this calculation, the “applicant” includes
the applicant itself, its affiliates, its controlling interests, and affiliates of its controlling interests, as
defined by section 1.2110 of the Commission’s rules.
114
87. Applicants must make upfront payments sufficient to obtain bidding eligibility on the
construction permits on which they will bid. The Bureaus proposed, in the Auction 84 Comment Public
Notice, that the amount of the upfront payment would determine a bidder’s initial bidding eligibility, the
maximum number of bidding units on which a bidder may place bids in any single round.
115
Under the
(Continued from previous page)
Shannon, Esq., Counsel for Lynch 3G Communications Corp., from Margaret W. Wiener, Chief, Auctions and
Industry Analysis Division, Wireless Telecommunications Bureau, DA 03-1944, 18 FCC Rcd 11552 (WTB 2003).
112
Amendment of Part 1 of the Commission’s Rules – Competitive Bidding Proceeding, WT Docket No. 97-82,
Order, Memorandum Opinion and Order and Notice of Proposed Rule Making, FCC 97-60, 12 FCC Rcd 5686,
5697-98 ¶ 16 (1997); see also Broadcast First Report and Order, 13 FCC Rcd at 15971 ¶ 134.
113
Part 1 Fifth Report and Order, 15 FCC Rcd at 15316-18 ¶¶ 40-43; see also 47 C.F.R. § 1.2106(a); Section II.F
“Provisions Regarding Former and Current Defaulters,” above.
114
47 C.F.R. § 1.2110(c).
115
Auction 84 Comment Public Notice, 28 FCC Rcd at 15676 ¶ 20.
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Bureaus’ proposal, in order to bid on a particular construction permit, otherwise qualified bidders that are
designated in Attachment A of this Public Notice for that construction permit must have a current
eligibility level that meets or exceeds the number of bidding units assigned to that construction permit.
At a minimum, therefore, an applicant’s total upfront payment must be enough to establish
eligibility to bid on at least one of the construction permits designated for that applicant in
Attachment A of this Public Notice, or else the applicant will not be eligible to participate in the
auction. An applicant does not have to make an upfront payment to cover all construction permits
designated for that applicant in Attachment A of this Public Notice, but only enough to cover the
maximum number of bidding units that are associated with construction permits on which they wish to
place bids and hold provisionally winning bids in any given round.
116
The total upfront payment does not
affect the total dollar amount the bidder may bid on any given construction permit.
88. In the Auction 84 Comment Public Notice, the Bureaus proposed an upfront payment for
each construction permit, taking into account various factors related to the efficiency of the auction
process and the potential value of similar spectrum, and sought comment on this proposal. The Bureaus
received no comments on the proposal that the upfront payment amount would determine a bidder’s
initial bidding eligibility, and this proposal is adopted. The specific upfront payment amounts and
bidding units for each construction permit are set forth in Attachment A of this Public Notice.
89. In calculating its upfront payment amount, an applicant should determine the maximum
number of bidding units on which it may wish to be active (bid on or hold provisionally winning bids on)
in any single round, and submit an upfront payment amount covering that number of bidding units.
117
In
order to make this calculation, an applicant should add together the bidding units for all construction
permits on which it seeks to be active in any given round. Applicants should check their calculations
carefully, as there is no provision for increasing a bidder’s eligibility after the upfront payment
deadline.
Example: Upfront Payments and Bidding Flexibility
Construction
Permit
Market Name Bidding Units Upfront Payment
MM-AM84-39A Nevada 2 – Spring Valley 10,000 $10,000
MM-AM84-100 Texas 1 - Canyon 3,500 $3,500
If a bidder wishes to bid on both construction permits in a round, it must be identified on Attachment A
for both and have purchased at least 13,500 bidding units (10,000 + 3,500) of bidding eligibility. If it
only wishes to bid on one, but not both, purchasing 10,000 bidding units would meet the eligibility
requirement for either construction permit. The bidder would be able to bid on either construction
permit, but not both at the same time. If the bidder purchased only 3,500 bidding units, the bidder
would have enough eligibility for the Texas 1 - Canyon construction permit but not for the Nevada 2 –
Spring Valley construction permit.
116
Provisionally winning bids are bids that would become final winning bids if the auction were to close after the
given round. See Section IV.B.4 “Provisionally Winning Bids,” below.
117
A qualified bidder’s maximum eligibility will not exceed the sum of the bidding units associated with the total
number of construction permits identified for that applicant in Attachment A of this public notice. In some cases a
qualified bidder's maximum eligibility may be less than the amount of its upfront payment because the qualified
bidder has either previously been in default on a Commission construction permit or license or delinquent on non-
tax debt owed to a Federal agency (see 47 C.F.R. § 1.2106(a)), or has submitted an upfront payment that exceeds the
total amount of bidding units associated with the construction permits designated for that bidder.
Federal Communications Commission DA 14-63
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90. If an applicant is a former defaulter, it must calculate its upfront payment for all of its
identified construction permits by multiplying the number of bidding units on which it wishes to be active
by 1.5.
118
In order to calculate the number of bidding units to assign to former defaulters, the
Commission will divide the upfront payment received by 1.5 and round the result up to the nearest
bidding unit.
119
E. Applicant’s Wire Transfer Information for Purposes of Refunds of Upfront
Payments
91. To ensure that refunds of upfront payments are processed in an expeditious manner, the
Commission is requesting that all pertinent information listed below be supplied. Applicants can provide
the information electronically during the short-form application remedial filing window after the form has
been submitted. (Applicants are reminded that information submitted as part of an FCC Form 175 will be
available to the public; for that reason, wire transfer information should not be included in an FCC Form
175.) Wire Transfer Instructions can also be faxed to the FCC, Financial Operations, Auctions
Accounting Group, Attn: Gail Glasser, at (202) 418-2980. Eligibility for refunds is discussed in Section
V.E, below. All refunds will be returned to the payer of record as identified on the FCC Form 159 unless
the payer submits written authorization instructing otherwise. For additional information, please call Gail
Glasser at (202) 418-0578.
Name of Bank
ABA Number
Address of Bank
Contact and Telephone Number
Account Number to Credit
Name of Account Holder
FCC Registration Number (FRN)
Correspondent Bank (if applicable)
ABA Number
Account Number
F. Auction Registration
92. Approximately ten days before the auction, the Bureaus will issue a public notice
announcing all qualified bidders for the auction. Qualified bidders are those applicants with submitted
FCC Form 175 applications that are deemed timely filed, accurate, and complete, provided that such
applicants have timely submitted an upfront payment that is sufficient to qualify them to bid.
93. All qualified bidders are automatically registered for the auction. Registration materials
will be distributed prior to the auction by overnight mail. The mailing will be sent only to the contact
person at the contact address listed in the FCC Form 175 and will include the SecurID
®
tokens that will
be required to place bids, the “Integrated Spectrum Auction System (ISAS) Bidder’s Guide,” and the
Auction Bidder Line phone number.
94. Qualified bidders that do not receive this registration mailing will not be able to submit
bids. Therefore, if this mailing is not received by noon on Wednesday, April 30, 2014, call the Auctions
118
47 C.F.R. § 1.2106(a).
119
If a former defaulter fails to submit a sufficient upfront payment to establish eligibility to bid on at least one of
the construction permits designated for that applicant in Attachment A of this Public Notice, the applicant will not
be eligible to participate in the auction. Broadcast First Report and Order, 13 FCC Rcd at 15979-80 ¶ 153. This
applicant will retain its status as an applicant in Auction 84 and will remain subject to 47 C.F.R. §§ 1.2105(c) and
73.5002(d). See Star and Northeast Review Order, 22 FCC Rcd at 8943.
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Hotline at (717) 338-2868. Receipt of this registration mailing is critical to participating in the auction,
and each applicant is responsible for ensuring it has received all of the registration material.
95. In the event that SecurID
®
tokens are lost or damaged, only a person who has been
designated as an authorized bidder, the contact person, or the certifying official on the applicant’s short-
form application may request replacements. To request replacement of these items, call Technical
Support at (877) 480-3201, option nine; (202) 414-1250; or (202) 414-1255 (TTY).
G. Remote Electronic Bidding
96. The Commission will conduct this auction over the Internet, and telephonic bidding will
be available as well. Only qualified bidders are permitted to bid. Each applicant should indicate its
bidding preference — electronic or telephonic — on its FCC Form 175. In either case, each authorized
bidder must have its own SecurID
®
token, which the Commission will provide at no charge. Each
applicant with one authorized bidder will be issued two SecurID
®
tokens, while applicants with two or
three authorized bidders will be issued three tokens. For security purposes, the SecurID
®
tokens, the
telephonic bidding telephone number, and the “Integrated Spectrum Auction System (ISAS)
Bidder’s Guide” are only mailed to the contact person at the contact address listed on the FCC
Form 175. Each SecurID
®
token is tailored to a specific auction. SecurID
®
tokens issued for other
auctions or obtained from a source other than the FCC will not work for Auction 84.
97. Please note that the SecurID
®
tokens can be recycled, and the Bureaus encourage bidders
to return the tokens to the FCC. Pre-addressed envelopes will be provided to return the tokens once
bidding has closed.
H. Mock Auction – May 2, 2014
98. All qualified bidders will be eligible to participate in a mock auction on Friday, May 2,
2014. The mock auction will enable bidders to become familiar with the FCC Auction System prior to
the auction. The Bureaus strongly recommend that all bidders participate in the mock auction. Details
will be announced by public notice.
IV. AUCTION
99. The first round of bidding for Auction 84 will begin on Tuesday, May 6, 2014. The
initial bidding schedule will be announced in a public notice listing the qualified bidders, which is
released approximately 10 days before the start of the auction.
A. Auction Structure
1. Simultaneous Multiple Round Auction
100. In the Auction 84 Comment Public Notice, the Bureaus proposed to auction all
construction permits in Auction 84 in a single auction using the Commission’s standard simultaneous
multiple-round auction format.
120
This type of auction offers every construction permit for bid at the
same time and consists of successive bidding rounds in which eligible bidders may place bids on
individual construction permits. A bidder may bid on, and potentially win, any number of construction
permits for which that bidder is designated an applicant in Attachment A of this Public Notice. The
Bureaus received no comment on this proposal, and this proposal is adopted. Unless otherwise
announced, bids will be accepted on all construction permits in each round of the auction until bidding
stops on every construction permit.
120
Auction 84 Comment Public Notice, 28 FCC Rcd at 15674 ¶ 11.
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2. Eligibility and Activity Rules
101. As discussed above, the Bureaus will use upfront payments to determine initial
(maximum) bidding eligibility (as measured in bidding units) for Auction 84.
121
The amount of the
upfront payment submitted by a bidder determines initial bidding eligibility, the maximum number of
bidding units on which a bidder may be active. As noted earlier, each construction permit is assigned a
specific number of bidding units as listed in Attachment A. Bidding units assigned to each construction
permit do not change as prices rise during the auction. Upfront payments are not attributed to specific
construction permits. Rather, a bidder may place bids on any of the construction permits for which it is
designated an applicant in Attachment A of this Public Notice as long as the total number of bidding units
associated with those construction permits does not exceed its current eligibility. Eligibility cannot be
increased during the auction; it can only remain the same or decrease. Thus, in calculating its upfront
payment amount, an applicant must determine the maximum number of bidding units it may wish to bid
on or hold provisionally winning bids on in any single round, and submit an upfront payment amount
covering that total number of bidding units. At a minimum, an applicant’s upfront payment must cover
the bidding units for at least one of the construction permits for which it is designated an applicant in
Attachment A of this Public Notice. The total upfront payment does not affect the total dollar amount a
bidder may bid on any given construction permit.
102. In order to ensure that an auction closes within a reasonable period of time, an activity
rule requires bidders to bid actively throughout the auction, rather than wait until late in the auction before
participating. Bidders are required to be active on a specific percentage of their current bidding eligibility
during each round of the auction.
103. A bidder’s activity level in a round is the sum of the bidding units associated with
construction permits covered by the bidder’s new and provisionally winning bids.
122
A bidder is
considered active on a construction permit in the current round if it is either the provisionally winning
bidder at the end of the previous bidding round or if it submits a bid in the current round (see “Bid
Amounts” in Section IV.B.3, below).
104. The Bureaus received no comments on the proposed eligibility and activity rules.
Therefore, in order to ensure that the auction closes within a reasonable period of time, the Bureaus adopt
the proposal with the following activity requirement: a bidder is required to be active on 100 percent of its
current eligibility during each round of the auction. That is, a bidder must either place a bid or be a
provisionally winning bidder during each round of the auction. Failure to maintain the requisite activity
level will result in the use of an activity rule waiver, if any remain, or a reduction in the bidder’s
eligibility, possibly curtailing or eliminating the bidder’s ability to place additional bids in the auction.
123
3. Activity Rule Waivers
105. In the Auction 84 Comment Public Notice, the Bureaus proposed that each bidder in the
auction be provided with three activity rule waivers.
124
The Bureaus received no comments on this issue.
106. Therefore, the Bureaus adopt this proposal to provide bidders with three activity rule
waivers. Bidders may use an activity rule waiver in any round during the course of the auction. Use of
an activity rule waiver preserves the bidder’s eligibility despite its activity in the current round being
below the required minimum activity level. An activity rule waiver applies to an entire round of bidding
121
See Section III.D.3 “Upfront Payments and Bidding Eligibility,” above.
122
Provisionally winning bids are bids that would become final winning bids if the auction were to close after the
given round. See Section IV.B.4 “Provisionally Winning Bids,” below.
123
See Section IV.A.3 “Activity Rule Waivers,” below.
124
Auction 84 Comment Public Notice, 28 FCC Rcd at 15677 ¶ 26.
Federal Communications Commission DA 14-63
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and not to a particular construction permit. Waivers can be either proactive or automatic and are
principally a mechanism for auction participants to avoid the loss of bidding eligibility in the event that
exigent circumstances prevent them from placing a bid in a particular round.
107. The FCC Auction System assumes that a bidder with insufficient activity would prefer to
apply an activity rule waiver (if available) rather than lose bidding eligibility. Therefore, the system will
automatically apply a waiver at the end of any bidding round in which a bidder’s activity level is below
the minimum required unless (1) the bidder has no activity rule waivers remaining or (2) the bidder
overrides the automatic application of a waiver by reducing eligibility. If no waivers remain and the
activity requirement is not satisfied, the FCC Auction System will permanently reduce the bidder’s
eligibility, possibly curtailing or eliminating the ability to place additional bids in the auction.
108. A bidder with insufficient activity may wish to reduce its bidding eligibility rather than
use an activity rule waiver. If so, the bidder must affirmatively override the automatic waiver mechanism
during the bidding round by using the “reduce eligibility” function in the FCC Auction System. In this
case, the bidder’s eligibility is permanently reduced to bring it into compliance with the activity rule
described above. Reducing eligibility is an irreversible action; once eligibility has been reduced, a bidder
will not be permitted to regain its lost bidding eligibility, even if the round has not yet closed.
109. Finally, a bidder may apply an activity rule waiver proactively as a means to keep the
auction open without placing a bid. If a proactive waiver is applied (using the “apply waiver” function in
the FCC Auction System) during a bidding round in which no bids are placed, the auction will remain
open and the bidder’s eligibility will be preserved. However, an automatic waiver applied by the FCC
Auction System in a round in which there are no new bids or proactive waivers will not keep the auction
open. A bidder cannot submit a proactive waiver after bidding in a round, and applying a proactive
waiver will preclude it from placing any bids in that round. Applying a waiver is irreversible; once a
bidder submits a proactive waiver, the bidder cannot unsubmit the waiver even if the round has not
yet ended.
4. Auction Stopping Rules
110. For Auction 84, the Bureaus proposed to employ a simultaneous stopping rule approach,
which means all construction permits remain available for bidding until bidding stops simultaneously on
every construction permit.
125
More specifically, bidding will close on all construction permits after the
first round in which no bidder submits any new bids or applies a proactive waiver.
111. We also sought comment on alternative versions of the simultaneous stopping rule for
Auction 84:
Option 1. The auction would close for all construction permits after the first round in which no
bidder applies a proactive waiver or places any new bids on any construction permit on which it
is not the provisionally winning bidder. Thus, absent any other bidding activity, a bidder placing
a new bid on a construction permit for which it is the provisionally winning bidder would not
keep the auction open under this modified stopping rule.
Option 2. The auction would close for all construction permits after the first round in which no
bidder applies a waiver or places any new bids on any construction permit that is not FCC-held.
Thus, absent any other bidding activity, a bidder placing a new bid on a construction permit that
does not already have a provisionally winning bid (an “FCC-held” construction permit) would not
keep the auction open under this modified stopping rule.
Option 3. The auction would close using a modified version of the simultaneous stopping rule
that combines (a) and (b) above.
125
Id. at 15674-75 ¶¶ 15-17.
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Option 4. The auction would end after a specified number of additional rounds. If the Bureaus
invoke this special stopping rule, it will accept bids in the specified final round(s), after which the
auction will close.
Option 5. The auction would remain open even if no bidder places any new bids or applies a
waiver. In this event, the effect will be the same as if a bidder had applied a waiver. Thus, the
activity rule will apply as usual, and a bidder with insufficient activity will either lose bidding
eligibility or use a waiver.
112. We proposed to exercise these options only in certain circumstances, for example, where
the auction is proceeding unusually slowly or quickly, there is minimal overall bidding activity, or it
appears likely that the auction will not close within a reasonable period of time or will close
prematurely.
126
Before exercising these options, we are likely to attempt to change the pace of the
auction. For example, the Bureaus may adjust the pace of bidding by changing the number of bidding
rounds per day and/or the minimum acceptable bids.
127
We proposed to retain the discretion to exercise
any of these options with or without prior announcement during the auction.
128
We received no comment
on these proposals and adopt them for Auction 84.
5. Auction Delay, Suspension, or Cancellation
113. In the Auction 84 Comment Public Notice, the Bureaus proposed that, by public notice or
by announcement during the auction, they may delay, suspend, or cancel the auction in the event of
natural disaster, technical obstacle, administrative or weather necessity, evidence of an auction security
breach or unlawful bidding activity, or for any other reason that affects the fair and efficient conduct of
competitive bidding.
129
We received no comment on this issue.
114. Because this approach has proven effective in resolving exigent circumstances in
previous auctions, the Bureaus adopt these proposals regarding auction delay, suspension, or cancellation.
By public notice or by announcement during the auction, we may delay, suspend, or cancel the auction in
the event of natural disaster, technical obstacle, administrative or weather necessity, evidence of an
auction security breach or unlawful bidding activity, or for any other reason that affects the fair and
efficient conduct of competitive bidding. In such cases, the Bureaus, in their sole discretion, may elect to
resume the auction starting from the beginning of the current round or from some previous round, or
cancel the auction in its entirety. Network interruption may cause the Bureaus to delay or suspend the
auction. We emphasize that we will exercise this authority solely at our discretion, and not as a substitute
for situations in which bidders may wish to apply their activity rule waivers.
B. Bidding Procedures
1. Round Structure
115. The initial schedule of bidding rounds will be announced in the public notice listing the
qualified bidders, which is released approximately 10 days before the start of the auction. Each bidding
round is followed by the release of round results. Multiple bidding rounds may be conducted each day.
116. The Bureaus have the discretion to change the bidding schedule in order to foster an
auction pace that reasonably balances speed with the bidders’ need to study round results and adjust their
bidding strategies. We may change the amount of time for the bidding rounds, the amount of time
between rounds, or the number of rounds per day, depending upon bidding activity and other factors.
126
Id. at 15675 ¶ 17.
127
Id.
128
Id.
129
Id. at 15675 ¶ 18.
Federal Communications Commission DA 14-63
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2. Reserve Price and Minimum Opening Bids
117. Section 309(j) of the Act calls upon the Commission to prescribe methods by which a
reasonable reserve price will be required or a minimum opening bid established when applications for
FCC licenses or construction permits are subject to auction (i.e., because they are mutually exclusive),
unless the Commission determines that a reserve price or minimum opening bid is not in the public
interest.
130
Consistent with this mandate, the Commission directed the Bureaus to seek comment on the
use of a minimum opening bid and/or reserve price prior to the start of each auction.
131
Among other
factors, we must consider the amount of spectrum being auctioned, levels of incumbency, the availability
of technology to provide service, the size of the geographic service areas, the extent of interference with
other spectrum bands, and any other relevant factors that could have an impact on the spectrum being
auctioned.
132
The Commission concluded that the Bureaus should have the discretion to employ either or
both of these mechanisms for future auctions.
133
118. In the Auction 84 Comment Public Notice, the Bureaus did not propose to establish
reserve prices for the construction permits in Auction 84. This is consistent with policy applied in earlier
broadcast spectrum auctions. We did, however, propose to establish minimum opening bids for each
construction permit, reasoning that a minimum opening bid, which has been used in other auctions, is an
effective tool for accelerating the competitive bidding process.
134
Specifically, a minimum opening bid
was proposed for each construction permit by taking into account various factors relating to the efficiency
of the auction and the potential value of the spectrum, including the type of service and class of facility
offered, market size, population covered by the proposed broadcast facility, industry cash flow data, and
recent broadcast transactions. We sought comment on the proposed minimum opening bids.
119. The Bureaus received no comments on the proposed minimum opening bids, and
therefore the Bureaus adopt the minimum opening bid amounts proposed in the Auction 84 Comment
Public Notice. The specific minimum opening bid amounts for all the construction permits available in
Auction 84 are again specified in Attachment A to this public notice.
3. Bid Amounts
120. In the Auction 84 Comment Public Notice, the Bureaus proposed that in each round, an
eligible bidder will be able to place a bid on a given construction permit in any of up to nine different
amounts.
135
Under the proposal, the FCC Auction System interface will list the nine acceptable bid
amounts for each construction permit.
136
The Bureaus received no comments on this proposal; therefore,
it is adopted.
121. The first of the acceptable bid amounts is called the minimum acceptable bid amount.
The minimum acceptable bid amount for a construction permit will be equal to its minimum opening bid
amount until there is a provisionally winning bid for the construction permit. After there is a
provisionally winning bid for a permit, the minimum acceptable bid amount will be a certain percentage
higher. That is, the minimum acceptable bid amount will be calculated by multiplying the provisionally
130
47 U.S.C. § 309(j)(4)(F).
131
Part 1 Third Report and Order, 13 FCC Rcd at 455-56 ¶ 141.
132
Id.
133
Id.
134
Auction 84 Comment Public Notice, 28 FCC Rcd at 15678 ¶¶ 29-31.
135
Bidders must have sufficient eligibility to place a bid on the particular construction permit. See Section III.D.3
“Upfront Payments and Bidding Eligibility,” above.
136
In the event of duplicate bid amounts due to rounding, the FCC Auction System will omit the duplicates and will
list fewer acceptable bid amounts for the construction permit.
Federal Communications Commission DA 14-63
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winning bid amount times one plus the minimum acceptable bid percentage. For example, if the
minimum acceptable bid percentage is 10 percent, the minimum acceptable bid amount will equal
(provisionally winning bid amount) * (1.10), rounded.
137
122. In the Auction 84 Comment Public Notice, we proposed to use a minimum acceptable bid
percentage of 10 percent. We did not receive any comments on this proposal. Our experience in previous
broadcast auctions assures us that a minimum acceptable bid percentage of 10 percent is sufficient to
ensure active bidding. Therefore, we will begin the auction with a minimum acceptable bid percentage of
10 percent.
123. The eight additional bid amounts are calculated using the minimum acceptable bid
amount and a bid increment percentage, which need not be the same as the percentage used to calculate
the minimum acceptable amount. The first additional acceptable bid amount equals the minimum
acceptable bid amount times one plus the bid increment percentage, rounded. If, for example, the bid
increment percentage is 5 percent, the calculation is (minimum acceptable bid amount) * (1 + 0.05),
rounded, or (minimum acceptable bid amount) * 1.05, rounded; the second additional acceptable bid
amount equals the minimum acceptable bid amount times one plus two times the bid increment
percentage, rounded, or (minimum acceptable bid amount) * 1.10, rounded; the third additional
acceptable bid amount equals the minimum acceptable bid amount times one plus three times the bid
increment percentage, rounded, or (minimum acceptable bid amount) * 1.15, rounded; etc. We will round
the results of these calculations using the standard rounding procedures for auctions.
138
124. In the Auction 84 Comment Public Notice, the Bureaus proposed to use a bid increment
percentage of 5 percent, and received no comment on this issue. We believe that a bid increment
percentage of 5 percent will give bidders the flexibility to speed up the pace of the auction, if appropriate.
We therefore adopt this proposal, and will begin the auction with a bid increment percentage of 5 percent.
125. The Bureaus proposed to retain the discretion to change the minimum acceptable bid
amounts, the minimum acceptable bid percentage, the bid increment percentage, and the number of
acceptable bid amounts if we determine that circumstances so dictate. Further, the Bureaus proposed to
retain the discretion to do so on a construction permit-by-construction permit basis. We also proposed to
retain the discretion to limit (a) the amount by which a minimum acceptable bid for a construction permit
may increase compared with the corresponding provisionally winning bid, and (b) the amount by which
an additional bid amount may increase compared with the immediately preceding acceptable bid amount.
For example, the Bureaus could set a $10,000 limit on increases in minimum acceptable bid amounts over
provisionally winning bids. Thus, if calculating a minimum acceptable bid using the minimum
acceptable bid percentage results in a minimum acceptable bid amount that is $12,000 higher than the
provisionally winning bid on a construction permit, the minimum acceptable bid amount would instead be
capped at $10,000 above the provisionally winning bid.
126. The Bureaus did not receive any comments on their proposal to retain the discretion to
change bid amounts as described above if they determine that circumstances so dictate. The Bureaus
adopt this proposal. If we exercise this discretion, we will alert bidders by announcement in the FCC
Auction System during the auction.
4. Provisionally Winning Bids
127. At the end of each bidding round, a “provisionally winning bid” will be determined based
on the highest bid amount received for each construction permit. A provisionally winning bid will remain
the provisionally winning bid until there is a higher bid on the same construction permit at the close of a
137
Results above $10,000 are rounded to the nearest $1,000; results below $10,000 but above $1,000 are rounded to
the nearest $100; and results below $1000 are rounded to the nearest $10.
138
Id.
Federal Communications Commission DA 14-63
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subsequent round. Provisionally winning bids at the end of the auction become the winning bids.
Bidders are reminded that provisionally winning bids count toward activity for purposes of the activity
rule.
139
128. In the Auction 84 Comment Public Notice, the Bureaus proposed to use a random number
generator to select a single provisionally winning bid in the event of identical high bid amounts being
submitted on a construction permit in a given round (i.e., tied bids).
140
No comments were received on
this proposal.
129. Hence, the Bureaus adopt the tied bids proposal described above. The FCC Auction
System will assign a random number to each bid upon submission. The tied bid with the highest random
number wins the tiebreaker, and becomes the provisionally winning bid. Bidders, regardless of whether
they hold a provisionally winning bid, can submit higher bids in subsequent rounds. However, if the
auction were to end with no other bids being placed, the winning bidder would be the one that placed the
provisionally winning bid.
5. Bidding
130. All bidding will take place remotely either through the FCC Auction System or by
telephonic bidding. There will be no on-site bidding during Auction 84. Please note that telephonic bid
assistants are required to use a script when entering bids placed by telephone. Telephonic bidders are
therefore reminded to allow sufficient time to bid by placing their calls well in advance of the close of a
round. The length of a call to place a telephonic bid may vary; please allow a minimum of ten minutes.
131. An Auction 84 bidder’s ability to bid on specific construction permits is determined by
two factors: (1) the construction permits designated for that applicant in Attachment A of this public
notice and (2) the bidder’s eligibility. The bid submission screens will allow bidders to submit bids on
only those construction permits designated for that applicant in Attachment A of this public notice.
132. In order to access the bidding function of the FCC Auction System, bidders must be
logged in during the bidding round using the passcode generated by the SecurID
®
token and a personal
identification number (“PIN”) created by the bidder. Bidders are strongly encouraged to print a “round
summary” for each round after they have completed all of their activity for that round.
133. In each round, eligible bidders will be able to place bids on a given construction permit in
any of up to nine pre-defined bid amounts.
141
For each construction permit, the FCC Auction System will
list the acceptable bid amounts in a drop-down box.
142
Bidders use the drop-down box to select from
among the acceptable bid amounts. The FCC Auction System also includes an “upload” function that
allows text files containing bid information to be uploaded.
134. Until a bid has been placed on a construction permit, the minimum acceptable bid amount
for that permit will be equal to its minimum opening bid amount. Once there are bids on a permit,
minimum acceptable bids for the following round will be determined as described in Section IV.B.3,
above.
135. During a round, an eligible bidder may submit bids for as many construction permits as it
wishes (providing that it is eligible to bid on the specific permits), remove bids placed in the current
bidding round, or permanently reduce eligibility. If multiple bids are submitted for the same construction
permit in the same round, the system takes the last bid entered as that bidder’s bid for the round. Bidding
139
Section IV.A.2 “Eligibility and Activity Rules,” above.
140
Auction 84 Comment Public Notice, 28 FCC Rcd at 15679 ¶ 37.
141
Bidders must have sufficient eligibility to place a bid on the particular construction permit. See Section III.D.3
“Upfront Payments and Bidding Eligibility,” above.
142
See Section IV.B.3 “Bid Amounts,” above.
Federal Communications Commission DA 14-63
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units associated with construction permits for which the bidder has removed bids do not count towards
current activity.
6. Bid Removal and Bid Withdrawal
136. In the Auction 84 Comment Public Notice, the Bureaus proposed bid removal
procedures.
143
We proposed to provide each bidder with the option of removing any bids placed in a
round provided that such bids are removed before the close of that bidding round. By using the “remove
bids” function in the FCC Auction System, a bidder may effectively “unsubmit” any bid placed within
that round. A bidder removing a bid placed in the same round is not subject to withdrawal payments.
Removing a bid will affect a bidder’s activity because a removed bid no longer counts toward bidding
activity for the round. The Bureaus received no comments on this issue of bid removals. These removal
procedures will enhance bidder flexibility during the auction. Therefore, the Bureaus adopt their
proposed procedures to permit bid removals for Auction 84. Once a round closes, a bidder may no longer
remove a bid.
137. In the Auction 84 Comment Public Notice, the Bureaus proposed to prohibit bidders from
withdrawing any bids after the round in which the bids were placed has closed.
144
This proposal was
made in recognition of the site-specific nature and wide geographic dispersion of the permits available in
this auction. The Bureaus received no comments on this issue of bid withdrawal. Accordingly, the
Bureaus will prohibit bid withdrawals in Auction 84. Bidders are cautioned to select bid amounts
carefully because no bid withdrawals will be allowed, even if a bid was mistakenly or erroneously made.
7. Round Results
138. Reports reflecting bidders’ identities for Auction 84 will be available before and during
the auction. Thus, bidders will know in advance of this auction the identities of the bidders against which
they are bidding.
139. Bids placed during a round will not be made public until the conclusion of that round.
After a round closes, the Bureaus will compile reports of all bids placed, current provisionally winning
bids, new minimum acceptable bid amounts for the following round, whether the construction permit is
FCC-held, and bidder eligibility status (bidding eligibility and activity rule waivers), and post the reports
for public access.
8. Auction Announcements
140. The Commission will use auction announcements to report necessary information such as
schedule changes. All auction announcements will be available by clicking a link in the FCC Auction
System.
V. POST-AUCTION PROCEDURES
141. Shortly after bidding has ended, the Commission will issue a public notice declaring the
auction closed, identifying the winning bidders, and establishing the deadlines for submitting down
payments, final payments, and the long-form applications (FCC Forms 301).
A. Down Payments
142. Within ten business days after release of the auction closing public notice, each winning
bidder must submit sufficient funds (in addition to its upfront payment) to bring its total amount of money
143
Auction 84 Comment Public Notice, 28 FCC Rcd at 15680 ¶ 39.
144
Id., 28 FCC Rcd at 15680 ¶¶ 40-42.
Federal Communications Commission DA 14-63
36
on deposit with the Commission for Auction 84 to twenty percent of the net amount of its winning bids
(gross bids less any applicable new entrant bidding credits).
145
143. Royce has filed comments in which it requests that we waive, modify, or refrain from
implementing the down payment and final payment procedures set forth herein and in sections 1.2107(b)
and 1.2109(a) of the rules.
146
Royce argues that it would be unfair if Auction 84 winners were required to
make payments prior to the grant of any construction permit and suggests that the “takings” clause of the
Fifth Amendment to the U.S. Constitution might be violated if such amounts were paid and the
Commission were to subsequently refuse to grant a permit.
147
Royce claims that, because the Auction 84
technical proposals have been pending for ten years, there is a “substantial possibility” that circumstances
may have arisen that would preclude the granting of such proposals, in particular those in MX Group 84-
31, in which Royce is an applicant.
148
Royce fails to describe any such circumstances or even state with
certainty that any issues might exist which would affect the Commission’s ability to grant a permit for
MX Group 84-31.
144. We decline to waive the payment deadlines set forth in sections 1.2107(b) and
1.2109(a).
149
These post-auction payment deadlines were designed to ensure that an auction’s ultimate
purpose of encouraging and facilitating the provision of reliable service to the public is not undermined
by winning bidders that lack the financial capability to pay for permits, construct stations, and provide
service to the public.
150
As we have noted above, each auction applicant is solely responsible for
investigating and evaluating all technical and marketplace factors that may have a bearing on the value of
the construction permits for AM broadcast facilities that it is seeking in this auction.
151
We also remind
145
47 C.F.R. § 1.2107(b).
146
47 C.F.R. §§ 1.2107(b), 1.2109(a).
147
Royce Comments at 1-3.
148
Royce Comments at 1-2. Royce also cites a case in which the Commission was unable to grant an FM
construction permit to an auction winner due to circumstances that came to light following an auction. Id. at 2,
citing Connoisseur Media, LLC, Memorandum Opinion and Order, DA 11-209, 26 FCC Rcd 1707 (WTB 2011)
(“Connoisseur”). In Connoisseur, the Wireless Telecommunications Bureau refunded the winning bid amount to
the auction winner as a result of interference issues raised by the Federal Aviation Administration on behalf of itself
and the United States Air Force after the close of the auction, after which the Media Bureau deleted the underlying
allotment from the FM Table of Allotments, rendering the auction winner no longer authorized to operate an FM
radio station in that location. Royce asserts that AM applications are “subject to many more allocation variables
than FM applications,” but fails to describe any allocation issues that might exist for applicants in MX Group 84-31
or any other MX groups in this auction.
149
47 C.F.R. §§ 1.2107(b), 1.2109(a). We note that the Commission explicitly extended these payment deadlines to
broadcast auction winners in a 2006 rulemaking order. See Implementation of the Commercial Spectrum
Enhancement Act and Modernization of the Commission’s Competitive Bidding Rules and Procedures, WT Docket
No. 05-211, Report and Order, FCC 06-4, 21 FCC Rcd 891, 907-09 ¶¶ 43-46 (2006)(“CSEA/Part 1 Report and
Order”).
150
See, e.g., BDPCS, Inc., Memorandum Opinion and Order, 15 FCC Rcd 17,590, 17,599-600 ¶ 15 (2000).
Further, in its 2006 decision extending section 1.2109(a)’s final payment deadline to broadcast auction winners, the
Commission observed that the underlying goal of this requirement is “to ensure that only serious, financially
qualified applicants receive licenses and construction permits so that the provision of service to the public is
expedited.” CSEA/Part 1 Report and Order, 21 FCC Rcd at 908 ¶ 45.
151
See Section I.B.3 “Due Diligence,” above. As discussed above, each bidder is responsible for assuring that, if it
wins a construction permit, it will be able to build and operate facilities in accordance with the Commission’s rules.
Thus, we strongly encourage each potential bidder to perform technical analyses and/or refresh their previous
analyses to assure itself that, should it become a winning bidder for any Auction 84 construction permit, it will be
able to build and operate facilities that will fully comply with all applicable technical and legal requirements.
Federal Communications Commission DA 14-63
37
applicants that the Media Bureau will entertain minor post-auction technical amendments, should they be
necessary to respond to changed circumstances. In the absence of any explanation of how the public
interest objectives of these requirements would be served or specific circumstances indicating that a
blanket waiver of the payment deadlines is warranted, we decline to modify or suspend our post-auction
payment rules.
B. Final Payments
145. Each winning bidder will be required to submit the balance of the net amount of its
winning bids within ten business days after the applicable deadline for submitting down payments.
152
C. Long-Form Application (FCC Form 301)
146. The Commission’s rules currently provide that within thirty days following the close of
bidding and notification to the winning bidders, unless a longer period is specified by public notice,
153
winning bidders must electronically submit a properly completed long-form application (FCC Form 301,
Application for Construction Permit for Commercial Broadcast Station) and required exhibits for each
construction permit won through Auction 84.
154
Winning bidders claiming new entrant status must
include an exhibit demonstrating their eligibility for the bidding credit.
155
Further instructions on these
and other filing requirements will be provided to winning bidders in the auction closing public notice.
D. Default and Disqualification
147. Any winning bidder that defaults or is disqualified after the close of the auction (i.e., fails
to remit the required down payment within the prescribed period of time, fails to submit a timely long-
form application, fails to make full payment, or is otherwise disqualified) will be subject to the payments
described in section 1.2104(g)(2).
156
This payment consists of a deficiency payment, equal to the
difference between the amount of the Auction 84 bidder’s winning bid and the amount of the winning bid
the next time a construction permit covering the same spectrum is won in an auction, plus an additional
payment equal to a percentage of the defaulter’s bid or of the subsequent winning bid, whichever is less.
148. The percentage of the applicable bid to be assessed as an additional payment for defaults
in a particular auction is established in advance of the auction. Accordingly, in the Auction 84 Comment
Public Notice, the Bureaus proposed to set the additional default payment for this auction at twenty
percent of the applicable bid. We received no comments on this proposal, and it is therefore adopted.
149. Finally, in the event of a default, the Commission has the discretion to re-auction the
construction permit or offer it to the next highest bidder (in descending order) at its final bid amount.
157
In addition, if a default or disqualification involves gross misconduct, misrepresentation, or bad faith by
an applicant, the Commission may declare the applicant and its principals ineligible to bid in future
auctions, and may take any other action that it deems necessary, including institution of proceedings to
revoke any existing authorizations held by the applicant.
158
152
47 C.F.R. § 1.2109(a); see CSEA/Part 1 Report and Order, 21 FCC Rcd at 907-09 ¶¶ 43-46.
153
47 C.F.R. § 73.5005(a).
154
The Commission’s rules also provide that a winning bidder in a commercial broadcast spectrum auction is
required to submit an application filing fee with its post-auction long-form application. See 47 C.F.R. § 1.2107(c).
155
47 C.F.R. §§ 1.2110(j) and 73.5005; see also 47 C.F.R. §1.2112(b)(2).
156
47 C.F.R. § 1.2104(g)(2).
157
47 C.F.R. §§ 1.2109(b) and (c).
158
47 C.F.R. § 1.2109(d).
Federal Communications Commission DA 14-63
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E. Refund of Remaining Upfront Payment Balance
150. After the auction, applicants that are not winning bidders or that are winning bidders
whose upfront payment exceeded the total net amount of their winning bids may be entitled to a refund of
some or all of their upfront payment. All refunds will be returned to the payer of record, as identified on
the FCC Form 159, unless the payer submits written authorization instructing otherwise. Bidders that
drop out of the auction completely (have exhausted all of their activity rule waivers and have no
remaining bidding eligibility) may request a refund of their upfront payments before the close of the
auction.
151. Bidders are encouraged to file their refund information electronically using the Refund
Information icon found on the Auction Application Manager page or through the Wire Transfer for
Refund Purposes link available on the Auction Application Submit Confirmation page in the FCC
Auction System. If an applicant has completed the refund instructions electronically, the refund will be
sent automatically. If an applicant has not completed the refund instructions electronically, the applicant
must send a written request including the following information:
Name, address, contact and phone number of Bank
ABA Number
Account Number to Credit
Name of Account Holder
FCC Registration Number (FRN)
The refund request can be submitted by fax to the Auctions Accounting Group at (202) 418-2980 or by
mail to:
Federal Communications Commission
Financial Operations
Auctions Accounting Group
Gail Glasser
445 12th Street, SW, Room 1-C864
Washington, DC 20554
NOTE: Refund processing generally takes up to two weeks to complete. Bidders with questions about
refunds should contact Gail Glasser at (202) 418-0578.
VI. CONTACT INFORMATION
152. Contact Information Table:
General Auction Information
General Auction Questions
Auction Process and Procedures
FCC Auctions Hotline
(888) 225-5322, option two; or
(717) 338-2868
Hours of service: 8:00 a.m. – 5:30 p.m. ET,
Monday through Friday
Auction 84 Process and Procedures Auctions and Spectrum Access Division
(202) 418-0660
Jeff Crooks (Analyst)
Linda Sanderson (Project Manager)
Federal Communications Commission DA 14-63
39
Auction 84 Legal Information
Auction Rules, Policies, Regulations, including
Reports of Section 1.2105(c) Violations and
Application Major Modifications
Auctions and Spectrum Access Division
(202) 418-0660
Lynne Milne (Attorney)
Kathryn Hinton (Attorney)
Licensing Information
Service Rules, Policies, Regulations
Licensing Issues, Engineering Issues
Due Diligence, Incumbency Issues
Audio Division (202) 418-2700
Lisa Scanlan (Attorney)
Tom Nessinger (Attorney)
Technical Support
Electronic Filing
FCC Auction System (Hardware/Software
Issues)
FCC Auctions Technical Support Hotline
(877) 480-3201, option nine; or (202) 414-1250
(202) 414-1255 (TTY)
Hours of service: 8:00 a.m. – 6:00 p.m. ET,
Monday through Friday
Payment Information
Wire Transfers
Refunds
FCC Auctions Accounting Branch
Gail Glasser at (202) 418-0578, or alternatively,
Theresa Meeks at (202) 418-2945, or
(202) 418-2980 (fax)
Auction Bidder Line Will be furnished only to qualified bidders
FCC Copy Contractor
Additional Copies of
Commission Documents
Best Copy and Printing, Inc.
445 12th Street, SW, Room CY-B402
Washington, DC 20554
(800) 378-3160
http://www.bcpiweb.com
Press Information Cecilia Sulhoff (202) 418-0587
FCC Forms (800) 418-3676 (outside Washington, DC)
(202) 418-3676 (in the Washington area)
http://www.fcc.gov/formpage.html
Accessible Formats
Braille, large print, electronic files, or
audio format for people with disabilities
Consumer and Governmental Affairs Bureau
(202) 418-0530 or (202) 418-0432 (TTY)
fcc504@fcc.gov
Small Businesses
Additional information for small and
disadvantaged businesses
Office of Communications Business
Opportunities
(202) 418-0990
http://www.fcc.gov/ocbo/
FCC Internet Sites http://www.fcc.gov
http://wireless.fcc.gov/auctions
http://www.fcc.gov/mb
– FCC –
Federal Communications Commission DA 14-63
A - 1
ATTACHMENT A
Auction 84 –Construction Permits To Be Auctioned
This page was intentionally inserted as a placeholder for Attachment A, which is available as a separate
file.
Federal Communications Commission DA 14-63
B - 1
ATTACHMENT B
Electronic Review and Updating of the FCC Form 175
This attachment provides instructions on reviewing and updating short-form applications and submitting
an upfront payment to participate in Auction 84. It also includes instructions for interested parties to view
the short-form applications filed.
I. Application Information Review, Updates and Submission
Each applicant seeking to participate in this auction should review its electronic short-form application
(FCC Form 175). Any updates to information in its application must be submitted via the FCC Auction
System. Any such updates to short-form applications for Auction 84 must be resubmitted and
confirmed prior to 6:00 p.m. ET on Thursday, March 4, 2014.
The short-form application requests information needed to determine whether an applicant qualifies to
participate in competitive bidding for Commission licenses or construction permits.
159
Information that an applicant had previously submitted in its Form 175 that remains valid under current
rules will be prefilled and displayed in the new Form 175 format to the extent feasible.
Each applicant should review its Form 175 to ensure that all required information is provided. Auction
84 applicants will have an opportunity to review and update their applications during a remedial filing
window which will be open from noon ET, February 19, 2014, until 6:00 p.m. ET, March 4, 2014.
Applicants are reminded that all application information required for participation in a spectrum auction is
necessary to determine an applicant’s qualifications, and will be made available for public inspection.
Accordingly, unnecessary sensitive information, such as Taxpayer Identification Numbers or Social
Security Numbers, must not be included in a Form 175. Applicants may request information submitted
not be made routinely available for public inspection following the procedures set forth in section 0.459
of the Commission’s Rules.
160
Such requests must be included as an attachment to the applicant’s Form
175 and identify the specific information to which the request applies. Because the required information
bears on each applicant’s qualifications, confidentiality requests will not be routinely granted.
161
An applicant may make multiple changes to its short-form application until the close of the remedial
filing window. Applicants are reminded to press the SUBMIT button in the FCC Auction System for the
changes to be submitted and considered by the Commission.
A. Previously Submitted Information
Each applicant is responsible for reviewing and verifying the accuracy of information provided in its
previously-submitted short-form application. If information has changed or is no longer accurate, an
applicant must update that information and resubmit its application prior to the close of the remedial filing
window on March 4, 2014.
The current version of the electronic Form 175 provides data fields into which an applicant may input
applicant information required by the Commission’s competitive bidding rules. Auction 84 applicants
initially filed using previous versions of the electronic Form 175 in which the majority of the required
159
See generally 47 C.F.R. § 1.2105.
160
47 C.F.R. § 0.459.
161
47 C.F.R. § 0.459(a).
Federal Communications Commission DA 14-63
B - 2
information was submitted in various attachments to the application. As discussed in greater detail
below, information entered by an Auction 84 applicant in a data field of its Form 175 will be prefilled and
displayed in a data field in the current version of the form.
Much of the information previously submitted in Auction 84 short-form applications exists in the form of
an attachment to the Form 175. To the extent that an applicant may need to make changes to information
previously submitted in an attachment, it may do so by uploading a new attachment describing any such
changes. Applicants may view their previously-filed attachments, but may not delete any previously-filed
attachment during the remedial filing window.
B. Minimum Software Requirements
The following software, at a minimum, is required to use the FCC Integrated Spectrum Auction System:
? Web Browser, either of the following is recommended:
? Microsoft
®
Internet Explorer 7.0 or later.
? Mozilla
®
Firefox
®
3.5 or later.
? PDF Viewer: Adobe Reader (previously called Adobe Acrobat Reader) version 5.0 or later,
available at http://www.adobe.com
? Minimum Screen Resolution: 1024 x 768
Currently, the Apple
®
Mac OS
®
is not supported.
C. Logging On
To review and resubmit a Form 175 electronically via the Internet, an applicant should start its web
browser and point it to either http://auctions.fcc.gov/ (primary location) or http://auctions2.fcc.gov/
(secondary location). Once on the FCC Auction System page, the applicant must log in to access a
previously-filed short-form application using its FCC Registration Number (“FRN”) and password.
The applicant’s ten-digit FRN can be located in the Commission Registration System (“CORES”). If
an applicant has forgotten or lost its password, the applicant should call Technical Support for
assistance at (877) 480-3201, option nine; (202) 414-1250; or (202) 414-1255 (TTY).
162
D. Accessing Previously-Filed Short-Form Application (FCC Form 175)
The Review or Modify Existing Short-Form Applications page displays any application created or
submitted within a filing window. This page shows the application status, the date and time the
application was last updated, and the date and time the application was last submitted. It may be used as a
reference to confirm the date and time of the most recent submission of the application.
To review or update an existing short-form application, an applicant should click the application auction
number, which will produce the application’s Summary page in a view/edit mode.
E. Application Filing Instructions
For Auction 84, the screens comprising a Form 175 consist of six series, each requesting separate types of
information: 1) Applicant Information; 2) Permit Selection; 3) New Entrant Bidding Credit Eligibility; 4)
162
See Section VI. “Contact Information,” above.
Federal Communications Commission DA 14-63
B - 3
Agreements; 5) Attachments; and 6) Certify and Submit. In addition, Summary screens appear prior to the
Certify and Submit screens. The Summary screens provide an overview of an applicant’s Form 175 that
facilitates reviewing and revising specific information, as well as an automated check for certain
inconsistencies and omissions in submitted information.
An Auction 84 applicant must update, revise and supplement information it previously submitted by
following the instructions below. Additional help in filling out Form 175 can be accessed in two ways:
1) by clicking on the Help link in the upper right of any screen, which will open Auction Application
Online Filing Help; or 2) by clicking on the text of any Common Question link appearing on the right
side of the screen. The common questions displayed relate to the current screen and vary from screen to
screen. Applicants may use the contact information provided in this Public Notice to obtain additional
assistance.
163
1. Applicant Information
The Applicant Information screens are the first series of screens in a Form 175 in which the applicant
provides basic information. At the opening of the remedial filing window, each screen of an applicant’s
Form 175 will display information that the applicant provided in its initial Form 175 filing. The applicant
will be presented with Form 175 subjects in the following order:
Applicant Legal Classification. The applicant’s legal classification field will be prefilled based on its
original Form 175 selection (e.g., individual, corporation, rural telephone cooperative, etc.). An
applicant’s legal classification may be changed in this data field during the remedial filing window. If the
applicant makes a change to its legal classification information, it should provide an attachment to the
Form 175 describing its legal classification change.
Applicant Status. The next data entry field on the same screen allows an applicant to submit optional
information regarding the applicant’s status as a minority- or woman-owned business or a rural telephone
company. The applicant’s status field will be pre-filled based on its original Form 175 entry, if any.
Applicant Name. This field will be pre-filled with the name of the applicant as previously provided on
the Form 175. An applicant’s name may be changed during the remedial filing window to reflect a
change in the legal name of the same applicant.
Applicant Address. This field will be pre-filled with the applicant’s address as previously provided on
the Form 175. Address information may be updated during the remedial filing window. Each applicant
must provide a physical address; a post office box may not be used for an applicant’s address.
Applicant Citizenship or Jurisdiction of Formation. Each applicant must disclose its citizenship (for
individuals) or jurisdiction of formation (for legal entities) in this field. This field will be pre-filled only
for those Auction 84 applicants that filed a Form 175 in 2007.
Responsible Individual. If an applicant did not identify a responsible individual in its previous filing or
seeks to update information on file, the name and title of that individual must be supplied in the next set
of data fields.
164
This information is not required if the applicant is an individual.
165
These fields will be
pre-filled only for those Auction 84 applicants that filed a Form 175 in 2007.
163
See Section VI. “Contact Information,” above.
164
Section 1.2105(a)(2) requires that the name and title of an officer or director be reported if the applicant is a
corporation. This rule requires disclosure of the name and title of a responsible person if a partner is not a natural
person.
Federal Communications Commission DA 14-63
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Contact Representative. All Auction 84 applicants should review and update, if necessary, the name,
street address, e-mail address, telephone number or fax number of the contact person who will
communicate with Commission personnel regarding the applicant’s Form 175. Applicants should note
that Commission personnel will communicate only with an applicant’s contact person or certifying
official, as designated on the applicant’s Form 175, unless the applicant’s certifying official or contact
person notifies the Commission in writing that the applicant’s counsel or other representative is
authorized to speak on its behalf.
166
A post office box may not be used for a contact person’s address. If any contact information changes
before the release of a public notice announcing the Auction 84 winning bidders, such changes must be
entered in these specific data entry fields of the applicant’s Form 175.
167
To simplify filling out the Form 175, an applicant that has the same address as its contact person can click
on the COPY APPLICANT ADDRESS button to automatically fill in the contact person’s address.
Authorized Bidders. Applicants must identify in these data fields at least one person authorized to bid
for the applicant in the auction, but may identify as many as three authorized bidders.
168
Only those
bidders listed in these Form 175 data entry fields will be authorized to place bids for the applicant during
the auction.
169
Bidding Preference. Any qualified bidder may bid either via the Internet or by telephone during the
auction. This data entry field allows designation of the applicant’s preference for electronic or telephonic
bidding. Specifying a preference for electronic or telephonic bidding assists the Commission in
determining the staff required in this auction for telephonic bidding.
2. Permit Selection
The Permit Selection screens make up the second series of screens in a Form 175. The initial Permit
Selection screen will be the View/Edit Permit Selection screen. This screen lists the construction permits
designated for that applicant in Attachment A of this public notice. The construction permits listed in this
section of the Form 175 are based on the initially-filed Form 301 “tech box” proposals of AM stations
which were used by Commission personnel to make mutual exclusivity determinations. Because the
initial filing deadline for Auction 84 Forms 175 has passed, as well as the deadlines for settlement periods
as described earlier in this public notice, an applicant will be able to view its construction permit listing
but will not be able to change its technical proposals.
170
Applicants are not obligated to bid on all permits
previously proposed; however, applicants will not be able to bid on any permits not specified for that
applicant in any particular mutual exclusivity group as listed in Attachment A of this public notice.
(Continued from previous page)
165
When information regarding a responsible party is required by 47 C.F.R. § 1.2105(a)(2) for a general partnership,
this information must be reported in an attachment.
166
Authorization to communicate with individuals other than the designated contact or certifying official may be
sent by email to auction84@fcc.gov.
167
These contact representative data fields may be changed by the applicant until close of bidding in this auction.
168
See 47 C.F.R. § 1.2105(a)(2)(iii).
169
These authorized bidder data fields may be changed by the applicant until close of bidding in this auction.
170
A change of any of its technical proposals would be a major amendment. See 47 C.F.R. § 1.2105(b).
Federal Communications Commission DA 14-63
B - 5
3. New Entrant Bidding Credit Eligibility
The New Entrant Eligibility screens are the third series of screens in a Form 175. The applicant’s new
entrant bidding credit eligibility field will be prefilled based on its original Form 175 selection. On the
initial screen in this series, applicants will view whether they had previously claimed the new entrant
bidding credit, and the percentage of bidding credit (25 percent or 35 percent) claimed.
171
Applicants
should ensure that bidding credit information is consistent with the bidding credit eligibility information
provided on the first Applicant Information screen.
Applicants are not permitted to seek an increase in the bidding credit percentage initially claimed on their
short-form applications.
172
No Bidding Credit Requested in Initial Filing. If an applicant has claimed no bidding credit eligibility,
no data entry fields will be available. Such applicants should continue to the next series of screens.
25 Percent Bidding Credit Requested in Initial Filing. An applicant claiming eligibility for a 25
percent new entrant bidding credit must provide information in data fields of the Form 175 to support its
claim during the remedial filing window.
If an applicant is no longer eligible for the 25 percent bidding credit originally claimed, the applicant
should send an e-mail to auction84@fcc.gov during the remedial filing window to seek assistance in
implementing that change on its Form 175. In addition, the applicant should submit an attachment to its
Form 175 during the remedial filing window with a narrative to explain the loss of eligibility for a 25
percent bidding credit, and a statement that the applicant no longer claims eligibility for a bidding credit
in Auction 84.
If an applicant remains eligible for the 25 percent new entrant bidding credit originally claimed, the
applicant must now provide additional information in data fields that it had previously submitted in an
attachment.
173
An applicant remaining eligible for the initially claimed 25 percent bidding credit must continue to a
screen and provide additional required information regarding existing mass media facilities in which the
applicant, or any individual or entity with an attributable interest in the applicant, has an attributable
interest.
174
Applicants must identify in the appropriate data entry fields of the reformatted Form 175:
? the existing mass media facility or facilities;
? the individual or entity with an attributable interest in the existing mass media facility;
171
See 47 C.F.R. §§ 1.2105(a)(2)(iv), 73.5002(b), 73.5007 and 73.5008.
172
See 47 C.F.R. § 1.2105(b).
173
Information regarding “same area” facilities for participants claiming a 25 percent new entrant bidding credit
directly affects bidding, because the location of the same area facilities affects whether the applicant is eligible for
the new entrant bidding credit on a permit-by-permit basis. That is, the applicant’s bidding credit percentage may
vary by permit (either 25 percent or zero). The newly formatted Form 175 has been integrated with the
Commission’s bidding system, so that this information is reflected in round results during the course of bidding.
Accordingly, applicants claiming eligibility for a 25 percent new entrant bidding credit now must enter information
in the data fields regarding its claimed eligibility, including same area facilities. Providing such information in an
attachment is not sufficient and applicants will not be able to submit an updated Form 175 without providing the
information in the appropriate data entry fields.
174
Full-service noncommercial educational stations, on both reserved and nonreserved channels, are included
among “media of mass communications” as defined in section 73.5008(b). See Minnesota Christian Broadcasters,
Inc., Memorandum Opinion and Order, FCC 03-5, 18 FCC Rcd 614 (2003).
Federal Communications Commission DA 14-63
B - 6
? the attributable interest in the facility; and
? whether any broadcast facilities proposed by the applicant in this auction are in the “same area”
as existing mass media facilities, as defined by applicable Commission rules.
175
? In the event that the applicant indicates that any of the broadcast facilities proposed in its
application for this auction are in the “same area” as the identified existing mass media facility,
the applicant must continue to an additional screen where the applicant must indicate which
broadcast facility it proposed in the auction is in the “same area” as the identified existing mass
media facility.
Once the applicant has identified all relevant existing mass media facilities, and all broadcast facilities
proposed in its application that are located in the “same area” as each relevant existing mass media
facility, it should continue to the View/Edit All Facilities screen. This screen lists the applicant’s
claimed new entrant bidding credit of 25 percent, the relevant existing mass media facilities, and the
Auction 84 broadcast facilities proposed by the applicant in the “same area” as each relevant existing
mass media facility. From this screen, options include:
? Clicking the Edit icon or the Modify bidding credit selection link to return to the initial New
Entrant bidding credit eligibility screen.
? Modifying information about relevant mass media facilities by clicking on them.
? Clicking the Delete This Facility link to delete a facility and identified proposed broadcast
facilities in the “same area.”
? Modifying information regarding a proposed broadcast facility by clicking on its identifier.
? Clicking the Remove icon next to information about a particular proposed broadcast facility in
the “same area” to remove the corresponding facility.
? Clicking the Add a proposed “Same Area” Facility to [an existing mass media facility] link to
add a new broadcast facility proposed in the application that is located in the “same area.”
? Clicking the CREATE NEW MASS MEDIA FACILITY button to add additional mass media
facilities.
When all relevant existing mass media facilities, and proposed broadcast facilities in the “same area” as
each relevant existing mass media facility, have been identified in the correct data entry fields, an
applicant claiming eligibility for a 25 percent bidding credit should click the CONTINUE button.
35 Percent Bidding Credit Requested in Initial Filing. If an applicant originally claimed eligibility for
a new entrant bidding credit of 35 percent, a designation of 35 percent will be pre-filled in this data field.
If this information remains accurate, such applicants should continue to the next series of screens.
Changes to Amount of Claimed 35 Percent Bidding Credit. If an applicant is no longer eligible for the
35 percent bidding credit it originally claimed, it should send an e-mail to auction84@fcc.gov during the
remedial filing window to seek assistance in implementing that change on its Form 175. In addition, the
applicant should submit an attachment to its Form 175 during the remedial filing window with a narrative
to explain the loss of eligibility for the claimed bidding credit, and a statement that the applicant no longer
claims eligibility for a bidding credit, or seeks a lower credit.
175
See 47 C.F.R. §§ 73.5007 - 73.5008.
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4. Agreements
The Agreements screens are the next series of screens in a Form 175. In these screens, applicants will
provide information regarding auction-related agreements subject to disclosure under the Commission’s
rules.
176
While any previous disclosures concerning bidding agreements were filed in an attachment to the Form
175, all Auction 84 applicants will now have access to the agreements data fields in the Form 175 to
report any updated or revised information.
If disclosures are required about any agreement or understanding, Auction 84 applicants will need to enter
the name of each party to an agreement or understanding (other than its own name) in the data entry fields
of the Agreements screen. Applicants may provide additional explanatory information in an attachment
during the remedial window for any additional disclosures under section 1.2105(a)(viii).
177
5. Ownership
Applicants must disclose current ownership information as required by sections 1.2105, 1.2110, 1.2112
and 73.5002 of the Commission’s rules.
178
Those rules generally require disclosure of the following
ownership information:
? All real parties in interest in the applicant, including the identity and relationship of those persons
or entities directly or indirectly owning or controlling the applicant.
? Name, address, and citizenship of any party directly or indirectly holding a 10 percent or greater
interest in the applicant, as well as the percentage of interest held in the applicant and whether the
interest is an indirect or direct interest.
? If there is an indirect interest in the auction applicant of 10 percent or greater, the attachment
must describe the relationship between the indirect interest holder and the auction applicant.
? Whether the party directly or indirectly holding a 10 percent or greater interest in the applicant
has voting or non-voting, common or preferred, stock and the specific amount of interest held.
? Any FCC-regulated entity or applicant for an FCC license, in which the auction applicant or any
real party in interest in the auction applicant owns a 10 percent or greater interest. Such
disclosure must include a description of the FCC-regulated entity’s principal business and its
relationship to the auction applicant.
Auction 84 applicants were required to disclose information on ownership of the applicant in an
attachment to the Form 175.
179
To the extent an applicant needs to make any changes to information
contained in its previously-filed Ownership attachment(s), it may do so by uploading a new attachment.
176
47 C.F.R. § 1.2105(a)(2)(viii)
177
Id.
178
47 C.F.R. §§ 1.2105, 1.2110, 1.2112(a), 73.5002.
179
AM Auction 84 Window Notice, 18 FCC Rcd at 23016, Attachment B at 23025-28; Supplemental Rockland
County Window Notice, 22 FCC Rcd at 16217, Attachment A at 16222-35.
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6. Summary
The Summary screens summarize information applicants have provided in previous screens, offering an
overview of an applicant’s Form 175 to help locate specific information. These screens will appear prior
to the Certify and Submit screens, in order to permit the applicant to review all of the information entered
in previous screens and to provide an opportunity to check for certain inconsistencies or omissions in the
information within the Form 175.
The first Summary screen, the Summary Overview screen, lists a series of screens in the application and
provides a VIEW/EDIT button to access each one.
? Clicking VIEW/EDIT for Applicant Information produces a Detail for Applicant Information
screen showing the information entered for each data entry field. To change any data item, the
applicant should click the Edit icon for the relevant data field.
? Clicking VIEW/EDIT for Permit Selection takes the applicant to the View/Edit Permit Selection
screen discussed above in the Permit Selection section. (Permit selection information cannot be
modified.)
? Clicking VIEW/EDIT for New Entrant Eligibility takes you to the View/Edit New Entrant
Eligibility screen discussed above in the New Entrant Bidding Credit section.
? Clicking VIEW/EDIT for Agreements takes you to the first page of the Agreements section.
Clicking on the CHECK ERRORS button initiates an automated check of the data entry fields of the
application. We note, however, that this CHECK ERRORS functionality does not check information in
attachments. Auction 84 applicants must check carefully all information disclosed in its attachments.
If the automated check encounters certain inconsistencies or omissions in information within the data
entry fields of the Form 175 that must be corrected before submitting the application, the inconsistency or
omission will be listed in an Error box at the top of the screen. To correct one of these errors, click its
corresponding EDIT button. In addition, if the automated check encounters certain inconsistencies or
omissions within the data entry fields of the Form 175 that might render the application incomplete or
deficient if the application is submitted with the current information, the apparent error will be listed in a
Warning box. To revise the information related to the apparent inconsistency or omission, click its
corresponding EDIT button.
Each applicant is solely responsible for providing complete and accurate information in its Form 175.
The automated check is provided to assist applicants in completing the Form 175. However, the
automated check cannot be relied upon to determine whether the information provided is complete or
accurate. The automated check may not catch all errors and applicants cannot rely on the automated
check to determine the completeness or the accuracy of submitted information.
If the automated check does not encounter certain inconsistencies or omissions, a box will appear
displaying the message “No Errors found - You may continue to Certify and Submit.” Applicants
may then click the CONTINUE TO CERTIFY button.
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7. Attaching Additional Information
If an applicant needs to provide additional information not requested directly in the data entry fields of the
screens comprising the Form 175, the applicant can provide that information in an attachment. For
Auction 84, applicants can update or revise information in previously submitted attachments in a new
attachment. Applicants may view their previously filed attachments. Applicants will not be able to
delete any previously filed attachments during the remedial filing window. Thus, applicants providing
new or revised information during this window are encouraged to provide a full description of any
changes, including an explanation of how such changes comply with relevant disclosure requirements (if
appropriate), so as to minimize the likelihood that inconsistencies or questions may arise during staff
review of the application.
The screen for adding an attachment to a Form 175 can be accessed by clicking on the Attachments link
in the upper right of any screen. The Add Attachment screen requests information regarding the type of
attachment to be added, the name of the file to be attached, and a brief description of the attachment.
NOTE: If the attachment is a request for a waiver or exemption of any of the Commission’s rules
or procedures, the applicant must identify the “Type” of attachment as a “Waiver” to facilitate
prompt processing.
Once the requested information is provided, applicants can add the attachment to the application by
clicking on the ADD ATTACHMENT button. A list of any attachments already uploaded along with the
applicant’s Form 175 will appear at the bottom of the screen.
When uploading attachments, applicants may use a variety of file formats, including MS Word,
WordPerfect 5.x or later, Adobe PDF, and ASCII text. Applicants must, however, verify that the files
contain all attachment information, and files may be no larger than 10 Mb and must not be password-
protected. Graphics files (e.g., .bmp, .tiff, .jpg) and spreadsheets (e.g., Excel, Lotus) are supported but
not recommended.
8. Certify and Submit
The Certify and Submit screens are the sixth and final series of screens in a Form 175. In these screens,
applicants provide certifications required of all participants in the Commission’s competitive bidding
processes.
180
First Certification Screen. The first Certify and Submit screen requires each applicant to indicate
whether the applicant, any affiliate of the applicant, any controlling interest of the applicant, or any
affiliate of a controlling interest has ever been in default on any Commission construction permit or
license or has ever been delinquent on any non-tax debt owed to any Federal agency.
181
Current
defaulters or delinquents are not eligible to participate in this auction. Former defaulters or delinquents
who have remedied all such defaults and cured all of the outstanding non-tax delinquencies can
participate in this auction so long as they are otherwise qualified and make upfront payments that are
equal to 50 percent more than otherwise required.
182
Applicants that filed during the 2007 supplemental window will find that the former defaulter option
button is pre-filled on the form based on its previous response. Such applicants should confirm that this
information remains accurate, and revise its response if the initial response no longer is accurate.
180
See generally, 47 C.F.R. §§ 1.2105(a)(2)(iv)-(xi).
181
47 C.F.R. § 1.2105(a)(2)(xi).
182
47 C.F.R. §§ 1.2105(a)(2)(xi), 1.2106(a).
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Second Certification Screen. To submit any changes to the information in its short-form application, an
applicant must go to the Certify and Submit screens and click the SUBMIT button. In certifying its
application, each applicant certifies under penalty of perjury that it is legally, technically, financially and
otherwise qualified to hold a Commission license.
183
Applicants are reminded that submission of a Form
175 constitutes a representation by the certifying official that he or she is an authorized representative of
the applicant who has read the form’s instructions and certifications, and that the contents of the
application, its certifications and any attachments are true, complete and correct. Submission of a false
certification to the Commission may result in penalties, including monetary forfeitures, license
forfeitures, ineligibility to participate in future auctions, and/or criminal prosecution.
The second Certify and Submit screen lists the certifications required of all applicants in the
Commission’s competitive bidding processes and requests that the applicant’s certifying official be
identified and sign the application. The name and title of a certifying official was provided when the
Form 175 was filed initially. An applicant seeking to submit new or revised information during this
remedial filing window must provide the name and title in the appropriate data entry fields of this screen
of the individual certifying the application on behalf of the applicant.
Who Can Certify. A short-form application must be certified by a person with the authority to bind the
applicant. For example, a short-form application may be certified by: (1) the applicant, if the applicant is
an individual; (2) one of the partners, if the applicant is a partnership; (3) an officer, director, or duly-
authorized employee, if the applicant is a corporation; (4) a member who is an officer, if the applicant is
an unincorporated association; or (5) a duly elected or appointed official who is authorized to make such
certifications under the laws of the applicable jurisdiction, if the applicant is a governmental entity.
Once the first Certify and Submit screen has been filled out and the second Certify and Submit screen has
been verified for accuracy and completeness, the application may be submitted by clicking on the
SUBMIT button.
After the application has been submitted, a confirmation screen will be displayed that states the
submission time and date, along with a unique file number. Applicants should print a copy of the
confirmation page for their records. They may then view and print copies of their submitted applications
by clicking on the PRINT PREVIEW button.
Any updates to Forms 175 for Auction 84 must be resubmitted and confirmed prior to 6:00 p.m. ET on
Tuesday, March 4, 2014. Late applications or unconfirmed submissions of electronic data will not be
accepted.
II. Upfront Payment Submission
A. Upfront Payment Calculator and Form 159
Applicants may access the Upfront Payment Calculator and Form 159 from the Review or Modify
Existing Short-Form Applications page or from the Auction Application Submit Confirmation page.
Clicking the Upfront Payment Calculator and Form 159 icon or link will provide a calculator to
determine the appropriate upfront payment amount to submit with the FCC Form 159. From the
Calculate Upfront Payment page, the applicant may click the Form 159 button to obtain the FCC
Form 159. For further instructions on how to submit the FCC Form 159, see Attachment C to this Public
Notice.
183
47 C.F.R. § 1.2105(a)(2)(v).
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B. Refund of Upfront Payment
On the Auction Application Submit Confirmation page, applicants can click on the Wire Transfer for
Refund Purposes link to provide wire transfer instructions for purposes of refunds of upfront payments.
The Commission will use this information to refund excess funds on deposit.
III. Miscellaneous
A. Access to View Short-Form Applications
After the remedial filing window deadline for short-form applications, the Commission will process all
timely-submitted applications to determine which are complete, and subsequently will issue a public
notice identifying: (1) those that are complete; and (2) those that are incomplete or deficient because of
minor defects that may be corrected. Once that public notice is released, any interested parties may be
able to view the short-form applications by searching for them in the Commission database.
To start a search, go to either http://auctions.fcc.gov/ (primary location) or http://auctions2.fcc.gov
(secondary location) and click the Auction Application Search link in the Public Access area on the
FCC Auction System page.
B. Technical Support
For technical assistance with using FCC software, contact the FCC Technical Support Hotline at (877)
480-3201, option nine; (202) 414-1250; or (202) 414-1255 (TTY). The FCC Technical Support Hotline
is available Monday through Friday from 8 a.m. to 6 p.m. ET. All calls to the FCC Technical Support
Hotline are recorded.
Paperwork Reduction Act Approval: The FCC Form 175 was assigned control number 3060-0600 and
was approved, as revised, by the Office of Management and Budget on January 23, 2014.
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ATTACHMENT C
Auction-Specific Instructions for
FCC Remittance Advice (FCC Form 159-February 2003 Edition)
Upfront Payments
The following information supplements the standard instructions for FCC Form 159 (Revised 2/03), and
is provided to help ensure correct completion of FCC Form 159 for upfront payments for Auction 84.
Applicants need to complete FCC Form 159 carefully, because:
? Mistakes may affect bidding eligibility; and
? Lack of consistency between information provided in FCC Form 159 (Revised 2/03), FCC Form
175, long-form application, and correspondence about an application may cause processing
delays.
Therefore appropriate cross-references between the FCC Form 159 Remittance Advice and the short-form
application (FCC Form 175) are described below:
Block
Number Required Information
1 LOCKBOX # - Enter “979085”
2 Payer Name - Enter the name of the person or company making the payment. If the
applicant itself is the payer, this entry would be the same as FCC Form 175.
3 Total Amount Paid - Enter the amount of the upfront payment associated with the FCC
Form 159 (Revised 2/03).
4-8 Street Address, City, State, ZIP Code - Enter the street mailing address (not Post Office
box number) where mail should be sent to the payer. If the applicant is the payer, these
entries would be the same as FCC Form 175 from the Applicant Information section.
9 Daytime Telephone Number - Enter the telephone number of a person knowledgeable
about this upfront payment.
10 Country Code - For addresses outside the United States, enter the appropriate postal
country code (available from the Mailing Requirements Department of the U.S. Postal
Service).
11 Payer FRN - Enter the payer’s ten-digit FCC Registration Number (“FRN”) registered in
the Commission Registration System (“CORES”).
21 Applicant FRN (Complete only if applicant is different than payer.) – Enter the applicant’s
ten-digit FRN registered in CORES.
24A Payment Type Code - Enter “U084”
25A Quantity - Enter the number “1”
26A Fee Due - Amount of Upfront Payment
27A Total Fee - Will be the same amount as 26A.
28A FCC Code 1 - Enter the number “84” (indicating Auction 84).
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NOTES:
? Do not use Remittance Advice (Continuation Sheet), FCC Form 159-C, for upfront payments.
? If applicant is different from the payer, complete blocks 13 through 21 for the applicant, using the
same information shown on FCC Form 175. Otherwise leave them blank.
? Since credit card payments will not be accepted for upfront payments for an auction, leave Section E
blank.
Winning Bidder Requirements, Down Payments and Final Payments
Specific information regarding down payments and final payments will be included in a post-auction
public notice announcing the winning bidders.
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ATTACHMENT D
Cross-Walk of Applicant Names
Applicant Name Listed in Attachment A
(name provided on FCC Form 175)
Applicant Name Listed in Auction 84 Comment PN
(name provided on FCC Form 301 Tech Box)
Bret Huggins Bret D. Huggins
Jerrold T. Lundquist Chaparral Broadcasting Company
Lexington Broadcasters, Inc. Lexington Park Broadcasters, Inc.
Nashville Radio 1410, Inc. Nashville Radio 1410, Incorporated
Ronald W. Matheny dba Murphy Broadcasting
System
Murphy Broadcasting System
Steve E. King Steve King
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ATTACHMENT E
Summary Listing of Judicial, Commission and Bureau Documents Addressing
Application of the Rule Prohibiting Certain Communications,
47 C.F.R. § 1.2105(c)
A. Judicial Decisions
Star Wireless, LLC v. FCC, 522 F.3d 469 (D.C. Cir. 2008).
High Plains Wireless, L.P. v. FCC, 276 F.3d 599 (D.C. Cir. 2002).
B. Commission Decisions
Procedural Amendments to Commission Part 1 Competitive Bidding Rules, Order, FCC 10-4, 25 FCC
Rcd 521 (2010).
Service Rules for the 698-746, 747-762 and 777-792 MHz Bands, WT Docket No. 06-150, Second Report
and Order, FCC 07-132, 22 FCC Rcd 15289, 15395 ¶¶ 285-86, 15489 (2007).
Star Wireless, LLC and Northeast Communications of Wisconsin, Inc., Order on Review, FCC 07-80, 22
FCC Rcd 8943 (2007).
Amendment of Part 1 of the Commission’s Rules – Competitive Bidding Procedures, WT Docket No. 97-
82, Seventh Report and Order, FCC 01-270, 16 FCC Rcd 17546 (2001).
Notice of Apparent Liability for Forfeiture of Western PCS BTA 1 Corp., Memorandum Opinion and
Order, FCC 99-385, 14 FCC Rcd 21571 (1999); Application of Western PCS BTA I Corp., Notice of
Apparent Liability for Forfeiture, FCC 98-42, 13 FCC Rcd 8305 (1998).
Notice of Apparent Liability for Forfeiture of US West Communications, Inc., Order, FCC 99-90, 14
FCC Rcd 8816 (1999); Application of US West Communications, Inc., Notice of Apparent Liability for
Forfeiture, FCC 98-41, 13 FCC Rcd 8286 (1998).
Application of Mercury PCS II, LLC,Memorandum Opinion and Order, FCC 98-203, 13 FCC Rcd
23755 (1998); Applications of: Mercury PCS II, LLC, Notice of Apparent Liability for Forfeiture, FCC
97-388, 12 FCC Rcd 17970 (1997).
Amendment of Part 1 of the Commission’s Rules – Competitive Bidding Procedures, WT Docket No.
97-82, Third Report and Order and Second Further Notice of Proposed Rule Making, FCC 97-413, 13
FCC Rcd 374, 463-69 ¶¶ 155-66 (1997).
Commercial Realty St. Pete, Inc., Memorandum Opinion and Order, FCC 96-400, 11 FCC Rcd 15374
(1996); Commercial Realty St. Pete, Inc., Notice of Apparent Liability for Forfeiture, FCC 95-58, 10 FCC
Rcd 4277 (1995).
Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No.
93-253, Memorandum Opinion and Order, FCC 94-295, 9 FCC Rcd 7684, 7687-89 ¶¶ 8-12 (1994).
Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No.
93-253, Fourth Memorandum Opinion and Order, FCC 94-264, 9 FCC Rcd 6858, 6866-69 ¶¶ 47-60
(1994).
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Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No.
93-253, Second Memorandum Opinion and Order, FCC 94-215, 9 FCC Rcd 7245, 7253-54 ¶¶ 48-53
(1994).
Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No.
93-253, Fifth Report and Order, FCC 94-178, 9 FCC Rcd 5532, 5570-71 ¶¶ 91-92 (1994).
Implementation of Section 309(j) of the Communications Act – Competitive Bidding, PP Docket No.
93-253, Second Report and Order, FCC 94-61, 9 FCC Rcd 2348, 2386-88 ¶¶ 221-26 (1994).
C. Wireless Telecommunications Bureau Decisions
Lotus Communications Corp., Order, DA 08-1364, 23 FCC Rcd 9107 (WTB 2008).
Application of Nevada Wireless, Memorandum Opinion and Order, DA 98-1137, 13 FCC Rcd 11973
(WTB 1998).
Applications of High Plains Wireless, L.P., Memorandum Opinion and Order, DA 97-2451, 12 FCC Rcd
19627 (WTB 1997).
Applications of Mercury PCS II, LLC, Memorandum Opinion and Order on Reconsideration, DA 97-
2324, 12 FCC Rcd 18093 (WTB 1997); Applications of Mercury PCS II, LLC, Memorandum Opinion
and Order, DA 97-1782, 13 FCC Rcd 5756 (WTB 1997).
Applications of GWI PCS, Inc., Memorandum Opinion and Order, DA 97-674, 12 FCC Rcd 6441 (WTB
1997).
Amendment of Parts 21 and 74 of the Commission’s Rules With Regard to Filing Procedures in the
Multipoint Distribution Service and in the Instructional Television Fixed Service, MM Docket No. 94-
131, Order, DA 95-2292, 11 FCC Rcd 9655 (WTB 1995).
1. Public Notices
Wireless Telecommunications Bureau Reminder of Anti-Collusion Rule Obligations, Public Notice, DA
04-3677, 19 FCC Rcd 22880 (WTB 2004).
Wireless Telecommunications Bureau Staff Provides Guidance on Completing the Short-Form
Application (FCC Form 175) for Auction No. 40, Auction of Licenses for Lower and Upper Paging
Bands, Public Notice, DA 01-2122, 16 FCC Rcd 16391 (WTB 2001).
Wireless Telecommunications Bureau Responds to Questions About the Local Multipoint Distribution
Service Auction, Public Notice, DA 98-37, 13 FCC Rcd 341 (WTB 1998).
Wireless Telecommunications Bureau Provides Guidance on the Anti-Collusion Rule for D, E and F
Block Bidders, Public Notice, DA 96-1460, 11 FCC Rcd 10134 (WTB 1996).
FCC Staff Clarifies Application of Anti-Collusion Rule to Broadband PCS "C" Block Reauction, Public
Notice, DA 96-929, 11 FCC Rcd 7031 (Auc. Div. 1996).
Wireless Telecommunications Bureau Clarifies Spectrum Auction Anti-Collusion Rules, Public Notice,
DA 95-2244, 11 FCC Rcd 9645 (WTB 1995).
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2. Letters from the Office of General Counsel, the Wireless Telecommunications
Bureau and the Media Bureau
Letter to John Cooper, Aurora Communications, Inc., from Margaret W. Wiener, DA 06-157, 21 FCC
Rcd 523 (Auc. Div. 2006).
Letter to Howard A. Kalmenson, Lotus Communications Corp., from Margaret W. Wiener, DA 06-156,
21 FCC Rcd 520 (Auc. Div. 2006).
Letter to Colby M. May from Barbara A. Kreisman and Margaret W. Wiener, DA 05-2445, 20 FCC Rcd
14648 (Video and Auc. Divs. 2005).
Letter to Robert Pettit from Margaret W. Wiener, DA 00-2905, 16 FCC Rcd 10080 (Auc. Div. 2000).
Letter to John Reardon, Mobex Communications, Inc., from Amy J. Zoslov, DA 98-1861, 13 FCC Rcd
17877 (Auc. Div. 1998).
Letter to Elliott J. Greenwald from Christopher J. Wright, DA 98-644, 13 FCC Rcd 7132 (Gen. Counsel
1998).
Letter to David L. Nace from Kathleen O’Brien Ham, DA 96-1566, 11 FCC Rcd 11363 (Auc. Div. 1996).
Letter to Mark Grady from Kathleen O’Brien Ham, DA 96-587, 11 FCC Rcd 10895 (Auc. Div. 1996).
Letter to Jonathan D. Blake from Kathleen O’Brien Ham, DA 95-2404, 10 FCC Rcd 13783 (Auc. Div.
1995).
Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief, Commercial Radio Division,
Wireless Telecommunications Bureau (rel. Dec. 14, 1994).
Letter to R. Michael Senkowski from Rosalind K. Allen, Acting Chief, Commercial Radio Division,
Wireless Telecommunications Bureau (rel. Dec. 1, 1994).
Letter to Gary M. Epstein and James H. Barker from William E. Kennard, General Counsel, Federal
Communications Commission (rel. Oct. 25, 1994).
Letter to Alan F. Ciamporcero from William E Kennard, General Counsel, Federal Communications
Commission (rel. Oct. 25, 1994).
D. Enforcement Bureau Decisions
Cascade Access, L.L.C., Notice of Apparent Liability for Forfeiture, DA 09-207, 24 FCC Rcd 1350 (Enf.
Bur. 2009).
Application of Star Wireless, LLC, Forfeiture Order, DA 04-3026, 19 FCC Rcd 18626 (Enf. Bur. 2004);
Application of Star Wireless, LLC, Notice of Apparent Liability for Forfeiture, DA 03-2722, 18 FCC Rcd
17648 (Enf. Bur. 2003).
Application of Northeast Communications of Wisconsin, Inc., Forfeiture Order, DA 04-3027, 19 FCC
Rcd 18635 (Enf. Bur. 2004); Application of Northeast Communications of Wisconsin, Inc., Notice of
Apparent Liability for Forfeiture, DA 03-2723, 18 FCC Rcd 17672 (Enf. Bur. 2003).
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E. Civil Actions Initiated by U.S. Department of Justice
U.S. v. Northeast Communications of Wis., Inc., No. 07-C-715, 608 F.Supp.2d 1049 (E.D.Wis. 2008).
U.S. v. Omnipoint Corp., Proposed Final Judgments and Competitive Impact Statements, Department of
Justice, 63 Fed. Reg. 65,228 (Nov. 25, 1998).
“Justice Department Sues Three Firms Over FCC Auction Practices,” Press Release, U.S. Department of
Justice (Nov. 10, 1998).
Complaint, U.S. v. Omnipoint Corp., No. 1:98CV02750 (D.D.C. Nov. 10, 1998).
Complaint, U.S. v. Mercury PCS II, L.L.C., No. 1:98CV02751 (D.D.C. Nov. 10, 1998).
Complaint, U.S. v. 21st Century Bidding Corp., No. 1:98CV02752 (D.D.C. Nov. 10, 1998).
How to Obtain Copies of Decisions Relating to Section 1.2105(c)
Many of the documents listed in this attachment can be retrieved from the following Commission web
site: http://wireless.fcc.gov/auctions/prohibited_communications.
The documents may be located by using our search engine (select the link “search”). Documents
retrieved from the web site are available in various formats including Word, WordPerfect, Acrobat
Reader, Excel, and ASCII Text. To review a document in its entirety, including footnotes, it is necessary
to access the document in WordPerfect, MS Word, or Acrobat Reader.
Additionally, all of the documents can be ordered in hard copy for a fee from the Commission’s
duplicating contractor, Best Copy and Printing, Inc., 445 12th Street, SW, Room CY-B402, Washington,
DC 20554, (800) 378-3160, or at http://www.bcpiweb.com.